Food Cost Percentage Calculator
how to calculate food cost percentage
A Food Cost Percentage Calculator helps chefs, restaurant owners, and caterers determine how much of a dish’s sale price goes into the cost of ingredients. It’s crucial for pricing menus, controlling waste, and improving profit margins.
🧠 What You Know:
- The total cost of ingredients (food cost) for a menu item
- The menu price at which the item is sold
You want to calculate the food cost percentage (%)
🧮 Formula to Calculate Food Cost Percentage:
Food Cost % =
(Cost of Ingredients ÷ Selling Price) × 100
✅ Example:
- Ingredient Cost = ₹120
- Menu Price = ₹400
→ Food Cost % = (120 ÷ 400) × 100 = 30%
📌 When to Use This Calculator:
- When pricing new menu items
- For daily/weekly food cost analysis
- During inventory and waste audits
- To compare profitability across dishes
❗ Common Mistakes to Avoid:
- Don’t include non-food costs (labor, utilities)
- Always calculate using standard portion sizes
- Update food cost regularly due to market price fluctuations
🔍 Trending FAQs Based on User Searches:
1. What is an ideal food cost percentage in restaurants?
→ Typically 28%–35% depending on cuisine and service type
2. How to reduce food cost %?
→ Buy in bulk, reduce waste, improve portion control
3. Can I use this for recipe costing?
→ Yes! Calculate cost per serving for any dish
4. Does food cost % include packaging?
→ Generally no, unless it's a takeaway-only model
5. How often should I review food cost %?
→ Weekly or monthly for better financial control