Food Cost Calculator

Food cost is the percentage of a dish's selling price spent on raw materials. It's calculated by dividing ingredient cost per portion by selling price (excl. VAT). If a dish has 3 EUR in ingredients and sells for 12 EUR, food cost is 25%. It's one of the most important indicators for measuring profitability per dish and across the whole menu.

Depends on the concept, but the general benchmark is 25-30%. Quick-service can run at 20-25%, while fine dining sits between 28-35%, offset by a higher average ticket. Below 25% can mean stingy portions; above 35%, profitability is compromised — review your recipe sheets.

Main strategies: (1) negotiate prices with suppliers or pool purchases, (2) tighten portion sizes with precise recipe sheets, (3) reduce waste with better storage and FIFO, (4) use seasonal ingredients (cheaper), (5) apply menu engineering to push high-margin dishes, (6) review selling prices at least quarterly.

Theoretical food cost is what the recipe sheet says each dish should cost. Real food cost comes from dividing total purchases by total revenue in a period. The gap between them reveals waste, theft, spoilage, or portion errors. Ideally, the deviation should be under 2-3%.

At minimum, monthly at the global level (purchases vs revenue). At dish level, every time a key supplier changes prices, or at least quarterly. The most profitable restaurants check food cost weekly and update recipe sheets whenever a main ingredient cost changes significantly.