How to Calculate Your Food Cost Percentage
How to Calculate Your Food Cost Percentage
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🍕Calculate food cost and protect your profits – here’s how. 🔍 Food Cost Formula Total food cost ÷ total sales × 100 = your food cost percentage. So if you purchase $2,500 in food and sell $10,000 worth of dishes: $2,500 ÷ $10,000 = 0.25 → 25% food cost Why Does Food Cost Matter? Most experts recommend keeping food cost between 28%–35%, with ~30% as the sweet spot. Why? It helps ensure you’re priced right and protecting margin. Does My Restaurant Need Inventory Software? For small to midsize re
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Want to know how to calculate your restaurant's food cost in just 60 seconds? Start with inventory costs, add labor costs, and then calculate your cost of goods sold (COGS). For example, with an ice cream, inventory costs are $1.50 and labor costs are $0.50 per serving, totaling $2.00. If you sell an ice cream for $7, your food cost percentage is 28.57%. Keeping this between 15%-30% will help you maintain a healthy profit margin. Once you know your food costs, you can better promote high-profit
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