How to calculate food cost percentage

Food cost percentage is the share of a menu price that goes to ingredients. Divide what the plate costs to make by what you sell it for, then multiply by 100. A $4.20 burger that sells for $14 runs a 30% food cost.

Step 1: Cost every ingredient on the plate

For each ingredient, work out the cost of the amount you use from the pack price you paid:

A 10 lb case of ground beef at $52.80 is $5.28 per pound. A 6 oz patty (0.375 lb) costs $1.98. If you trim or cook an ingredient down, divide by the usable yield. Romaine with a 75% yield costs a third more per usable leaf than the head price suggests. See the yield and trim guide.

Step 2: Add up the plate

Do not forget the side that always goes out with the dish, the sauce cup, and the fryer oil. Those small lines are where most plate costs go wrong.

Step 3: Divide by the menu price

$4.20 ÷ $14.00 = 0.30, so the burger runs a 30% food cost. To find the price that hits a target, flip it:

At a 28% target, the burger needs to sell for $4.20 ÷ 0.28 = $15.00.

What is a good food cost percentage?

Many full-service restaurants aim for roughly 28% to 35% across the menu, but the right number depends on your concept, prices, and labor. Individual dishes vary a lot: a steak may run 40% and a pasta 18%, and the menu still works if the mix is right. Watch the overall number and the dishes that sell the most.

Plate food cost vs period food cost

The math above is theoretical (what each plate should cost). Your actual food cost for a period comes from inventory and purchases:

If actual runs well above theoretical, look at waste, over-portioning, comps, theft, or prices that changed since you last costed the menu.

Keep it current

Food cost percentage is only right on the day you calculate it. When the case price of beef moves, every recipe that uses it moves too. Try the free plate cost calculator or spreadsheet template, or let MenuForge recost every recipe automatically when an invoice comes in.

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