Calculate your food cost percentage, per-plate costs, and identify savings opportunities. Improve your restaurant profitability today.
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The standard formula for calculating food cost percentage is:
Food Cost % = (Beginning Inventory + Purchases - Ending Inventory) ÷ Total Food Sales × 100
Also known as "Cost of Goods Sold (COGS) ÷ Total Sales"
| Cuisine Type | Ideal Food Cost % | Notes |
|---|---|---|
| Fast Food / Quick Service | 20-25% | High volume, lower margins |
| Pizza | 25-30% | Ingredient costs vary widely |
| Mexican / Tex-Mex | 26-32% | Beans, rice, tortillas are cost-effective |
| Casual Dining | 28-32% | Balanced approach |
| Asian | 28-33% | Vegetables and rice are cost-effective |
| Sushi | 28-35% | Fish costs can vary significantly |
| Fine Dining | 30-35% | Higher quality, higher prices |
Track inventory weekly, use FIFO (first in, first out), and reduce waste through proper storage.
Build relationships with suppliers, buy in bulk when possible, and compare prices regularly.
Train staff to follow standard recipes and portion sizes. Use scales and measuring tools.
Focus on high-margin items, simplify menu to reduce complexity, and test menu pricing regularly.
Get personalized recommendations to reduce your food costs and increase profitability.