Costing basics 4 min read

How to calculate food cost percentage

The single number every restaurant operator already speaks. Here's how to calculate it cleanly.

Food cost percentage tells you what fraction of a dish's selling price goes to its raw ingredients and packaging.

The formula

Food cost % = (cost per portion ÷ selling price) × 100

A worked example

Say a chicken sandwich costs you $3 in ingredients and packaging, and you sell it for $10.

$3 ÷ $10 × 100 = 30% food cost.

What's a 'good' food cost?

Targets vary by category and concept:

Drinks and coffee often run 18 to 25%

Salads and bowls often run 28 to 32%

Mains often run 28 to 35%

Desserts often run 25 to 30%

Your goal isn't to chase the lowest possible food cost. It is to know yours and price with intention.

Why include packaging?

If a dish leaves your kitchen in a box, that box is a cost of the sale. Cafes, takeaway shops, and delivery kitchens that ignore packaging routinely overstate their margins.

Try it on your own menu.

Cost a dish in minutes. No spreadsheets.

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