Food Cost Percentage Calculator

Is your food cost eating your profits? Calculate your exact food cost percentage, find the ideal selling price, and see your real margin per item.

Understanding Food Cost Percentage

Food cost percentage is the ratio of ingredient costs to selling price. The formula is simple: (Ingredient Cost ÷ Selling Price) × 100. For a dish that costs $8 to make and sells for $24, the food cost is 33.3%.

The industry standard target is 25-35% depending on restaurant type. Fine dining typically runs 28-35% (higher ingredient quality, higher prices). Fast casual targets 25-30%. Fast food aims for 20-25%.

What to Do If Your Food Cost Is Too High

• Raise prices — use the calculator above to find your ideal selling price
• Reduce portions — measure portions consistently to prevent over-serving
• Negotiate with suppliers — even 5% better pricing compounds significantly
• Reduce waste — track waste daily and adjust prep quantities
• Menu engineering — promote high-margin items with badges and photos

How Digital Menus Help Control Food Costs

A digital menu with analytics shows you which items customers actually view and order. This data helps you identify under-performing dishes, promote high-margin items with badges and better positioning, and make data-driven decisions about your menu mix.