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Costing basics 3 min readJanuary 14, 2026by Dishboard
Food cost percentage vs gross margin
Same data, two lenses. Use whichever your team thinks in naturally.
Food cost % and gross margin % describe the same relationship from opposite sides.
Food cost % = cost divided by price. A lower number means more profit.
Gross margin % = (price minus cost) divided by price. A higher number means more profit.
If food cost is 30%, gross margin is 70%. They always add to 100%.
Restaurants traditionally speak in food cost. Retail and CPG businesses speak in margin. Use whichever your team already thinks in.
See both numbers on your own dish.
One cost and one price gives you margin, markup and food cost side by side.
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