Food Cost Calculator

Food cost percentage is the ratio of ingredient costs to menu price. The formula is: Food Cost % = (Ingredient Cost ÷ Menu Price) × 100. If a dish costs $4.50 in ingredients and sells for $15, the food cost is 30%. Most profitable restaurants target 28-32% food cost across their menu. Use our food cost percentage calculator for a quick check, or read our full guide on the food cost percentage formula.

Add up the cost of every ingredient in the recipe (price per unit × quantity used), then divide by the number of servings. For example, if your ingredients total $18 and the recipe makes 6 servings, your cost per serving is $3.00.

Include everything that touches the plate: proteins, starches, vegetables, sauces, garnishes, oil, and seasonings. Small costs like a tablespoon of olive oil ($0.12) or a sprig of rosemary ($0.08) add $0.50-1.00 per plate when combined.

It depends on restaurant type:

Pizzerias: 18-22% — low-cost core ingredients like dough and cheese.
Fast casual/QSR: 25-28% — high volume, simpler menus.
Full-service casual: 28-32% — the industry standard.
Fine dining: 30-35% — premium ingredients justify higher cost.

If your food cost is consistently above 35% (outside fine dining), review pricing, portions, and waste. For a deeper breakdown, see our guide on restaurant profit margins.

Three proven strategies:

1. Compare suppliers. Getting quotes from 2-3 vendors on your top 10 ingredients by spend can save 10-15% on those items alone.
2. Standardize portions. A cook who uses 7 oz of protein instead of 6 oz adds 17% to your ingredient cost on that item. Use scales and portioning tools.
3. Reduce waste. Track the gap between your theoretical food cost (from recipes) and actual food cost (from invoices). That gap is waste, spoilage, and overportioning.

For a complete playbook, read our guide on how to control food cost.

No. Food cost only includes raw ingredient costs. Labor is tracked separately. Together, food cost + labor cost = "prime cost," which most restaurants aim to keep under 60-65% of revenue.

For labor tracking, use our restaurant labor cost calculator. For a fully loaded view of what a dish actually costs to put out (including labor and overhead), try the cost per plate calculator.

Weekly is ideal — every time you receive supplier invoices. At minimum, recalculate monthly using a full inventory count.

Ingredient prices fluctuate with seasons and supply chains. A 10% increase in chicken price can silently wipe out your margin on multiple dishes. Restaurants that check weekly catch problems within days. Those that check monthly lose 3-4 weeks of profit before they even notice. Recipe costing software automates this — update one ingredient price and every recipe recalculates.

Theoretical food cost is what you should spend based on standardized recipes and the sales mix — what you'd spend if every dish were portioned perfectly with zero waste.

Actual food cost is what you really spent, calculated from inventory: (Beginning Inventory + Purchases - Ending Inventory) ÷ Food Sales.

The gap between them reveals operational problems:
Under 2%: Tight operation.
2-5%: Check portioning and waste procedures.
Over 5%: Audit for theft, spoilage, or unrecorded comps.

Learn more about tracking both numbers in our food cost calculation guide.

Divide your cost per serving by your target food cost percentage (as a decimal). If a dish costs $5.00 in ingredients and you target 30% food cost: $5.00 ÷ 0.30 = $16.67 minimum menu price. Round up to $17 and adjust based on your market.

This gives you a floor, not a ceiling. Factor in perceived value, competitor pricing, and menu engineering principles to finalize. Our menu pricing calculator and selling price calculator automate this math.