How to Calculate Food Cost
What is Food Cost?
A food cost calculator computes the cost of producing a recipe or menu item, and the food cost percentage relative to the selling price. Food cost percentage is the key profitability metric for restaurants — industry standard is 28–35%.
Step-by-Step Guide
- 1Sum the cost of all ingredients in the portion
- 2Food cost % = Ingredient cost / Selling price × 100
- 3Ideal selling price = Ingredient cost / Target food cost %
Worked Examples
Input
Ingredients cost £3.50 · Selling price £14.00
Result
Food cost 25%
£3.50/£14.00 = 25% — good margin