Food cost percentage — the ingredient cost as a share of the menu price — is one of the fundamental numbers restaurant owners track to make sure a dish is priced sustainably once labor, rent, and other overhead are factored in.
Enter the ingredient cost for one serving and the menu price you're charging, and this calculator shows the food cost percentage, profit per dish, and overall profit margin, along with a quick read on whether that food cost percentage falls in a commonly healthy range.
Restaurant industry guidance often targets a food cost percentage somewhere around 28-35%, though this varies significantly by cuisine type and restaurant concept — a steakhouse naturally runs higher ingredient costs than a pasta-focused menu.
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Frequently asked questions
What's a good target food cost percentage?
Many full-service restaurants aim for roughly 28-35%, though this varies by cuisine and concept — high-end steak or seafood dishes often run higher due to expensive core ingredients.
Does this account for labor and overhead costs?
No, this calculates food cost specifically; total profitability also needs labor, rent, and other overhead factored in separately for a complete picture.