Enter your ingredient costs and menu price to instantly calculate your food cost percentage, gross profit, and recommended pricing. Used by thousands of restaurant owners.
Food cost percentage is the most important metric for restaurant profitability. It tells you what portion of each menu item's revenue goes directly to ingredient costs. The formula is straightforward:
Food Cost % = (Total Ingredient Cost ÷ Menu Price) × 100
For example, if your signature burger uses $3.50 worth of ingredients (bun, patty, lettuce, tomato, cheese, sauce) and you sell it for $12.99, your food cost percentage is:
($3.50 ÷ $12.99) × 100 = 26.9%
A food cost percentage of 26.9% means that for every dollar of revenue from that burger, about 27 cents goes to ingredients. The remaining 73 cents covers labor, rent, utilities, and profit.
Industry benchmarks vary by restaurant type, but most operators target these ranges:
| Restaurant Type | Target Food Cost % | Notes |
|---|---|---|
| Quick Service / Fast Food | 20% - 28% | Lower ingredient costs, higher volume |
| Fast Casual | 25% - 32% | Mid-range ingredients, moderate volume |
| Full Service / Casual Dining | 28% - 35% | Higher quality ingredients, table service |
| Fine Dining | 30% - 40% | Premium ingredients, higher check average |
If your food cost percentage is consistently above 35%, you're likely losing money on that item. Use the calculator above to check each menu item, or upload your entire menu for an AI-powered analysis of every item at once.
A food cost calculator is a tool that helps restaurant owners determine how much each menu item costs to prepare. It adds up all ingredient costs for a dish and compares that total to the menu price, giving you a food cost percentage that shows how much of each sale goes to ingredients.
Food cost percentage = (Total Ingredient Cost / Menu Selling Price) x 100. For example, if a burger costs $3.50 in ingredients and sells for $12.00, the food cost percentage is ($3.50 / $12.00) x 100 = 29.2%.
Most successful restaurants target a food cost percentage between 25% and 35%. Fine dining restaurants may run 28-35%, fast casual 25-30%, and quick service 20-28%. The ideal percentage depends on your concept, labor costs, and overhead.
You should recalculate food costs at least monthly, and ideally weekly for high-volume items. Ingredient prices fluctuate with seasons, supply chain disruptions, and inflation. Regular recalculation prevents margin erosion.
Food cost is the dollar amount you spend on ingredients for a dish (e.g., $3.50). Food cost percentage is that dollar amount expressed as a percentage of the selling price (e.g., 29.2%). Percentage is more useful for comparing items and setting pricing targets.