Food Cost Percentage Calculator
Calculate food cost percentage from ingredient cost and menu price.
Enter a target to see the menu price needed to reach it.
Food Cost Percentage
Profit Breakdown
Suggested Menu Price
What Food Cost Percentage Means
Food cost percentage is the share of a menu item’s selling price that goes toward the ingredients used to make it. It is one of the most important metrics in restaurant management because it directly affects profitability. The formula is simple:
Food Cost % = (Ingredient Cost ÷ Menu Price) × 100
Most restaurants aim for a food cost percentage between 28% and 35%. A lower percentage means a larger share of each sale is profit, while a higher percentage squeezes margins. The ideal target varies by concept — fine dining often runs higher food costs, while fast-casual and bars typically run lower.
How to Price a Menu Item
To price a dish, start with its total plate cost — the sum of every ingredient, including garnishes and condiments. Then divide that cost by your target food cost percentage (expressed as a decimal) to find the minimum selling price:
Menu Price = Plate Cost ÷ (Target Food Cost % ÷ 100)
- A $4 plate cost at a 30% target gives a menu price of about $13.33.
- Round prices to psychologically appealing figures (e.g. $13.95) after the calculation.
- Remember that labor, rent, and overhead are paid out of gross profit, not just food cost.
Ideal vs. Actual Food Cost
The number this calculator produces is your ideal (or theoretical) food cost — what each dish should cost based on its recipe. Your actual food cost, measured from real inventory usage over a period, is almost always higher because of:
- Waste and spoilage — trim loss, expired stock, and overproduction.
- Over-portioning — servings larger than the standardized recipe.
- Theft and errors — comps, voids, and shrinkage.
- Price fluctuations — supplier costs that drift above your costed recipe.
Comparing ideal vs. actual reveals how much money is leaking out of the kitchen. A gap of more than a few percentage points usually signals a process problem worth investigating.