How to Calculate Food Cost Percentage (and Keep It Under Control)
Food cost percentage is the single most important number in a restaurant's P&L. Here is the exact formula, realistic target ranges, and why most owners only find out they have a problem too late.
The food cost percentage formula
Food Cost % = Cost of Food Used ÷ Food Sales, over the same period. If you spent 8,000 on food and sold 24,000 in food, your Food Cost % is 33%. The tricky part is not the formula — it is getting accurate, up-to-date numbers for both sides.
What is a good food cost percentage?
Most full-service restaurants target 28%–35% depending on concept and pricing strategy. Cafes and bakeries with high labor content often run a lower Food Cost % but a higher Labor Cost %. The real target that matters is Prime Cost — Food Cost % plus Labor Cost % combined, ideally under 60%.
Why manual food cost percentage tracking is unreliable
When Food Cost % is calculated manually at month end, price changes, waste, and portion drift have already happened weeks earlier. A food cost app calculates the percentage continuously from live purchase and recipe data, so you see problems while you can still fix them.
Turning the number into action
Knowing your Food Cost % is only useful if you know which suppliers, dishes, or ingredients are driving it up. That is where a food cost app earns its place — breaking the total number down by recipe and supplier.
See how a food cost app works in practice
Smart Plate's food cost app tracks purchases, recipe costs, and margins so you always know your real Food Cost % — without spreadsheets.
Try the Food Cost AppRelated reading
Food Cost App for RestaurantsRestaurant Food Cost Management Guide
FAQ
What is the formula for food cost percentage?
Food Cost % = Cost of Food Used ÷ Food Sales for the same period, usually calculated monthly or weekly.
What is a healthy food cost percentage for a restaurant?
Most restaurants aim for 28%–35%, though the right target depends on concept, pricing, and how Labor Cost % is balanced against it.
How often should Food Cost % be calculated?
Ideally weekly. Monthly calculations are too slow to catch and fix a cost problem before it affects profitability.
Want your Food Cost % calculated automatically every week instead of once a month? Check out the food cost app at foodcostapp.com.