how to calculate food cost percentage

Food Cost Percentage Calculator

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