Guide · English · Updated 2026
Food Cost Formula: how to calculate food cost percentage
Food cost is the share of a dish's selling price that goes to ingredients. Get the formula right and every pricing decision — menu engineering, supplier negotiation, portion control — rests on real numbers instead of instinct.
The formula
Food cost % = (ingredient cost ÷ selling price) × 100
Example: a chicken dish costs $3.60 in ingredients and sells for $12.00 → (3.60 ÷ 12.00) × 100 = 30% food cost, leaving a 70% gross margin to cover labour, rent, utilities and profit.
Target price = ingredient cost ÷ target food cost %
Reverse the formula to price a new dish: $3.60 ÷ 0.30 = $12.00. For a whole period, use COGS = beginning inventory + purchases − ending inventory, then divide COGS by food sales.
Calculate it now
Food cost
30.0%
Gross margin
70.0%
Price at target
12.00
Target food cost by restaurant type
| Restaurant type | Typical food cost |
|---|---|
| Fine dining | 28–35% |
| Casual full service | 25–32% |
| Fast casual / QSR | 20–28% |
| Pizzeria | 20–25% |
| Café / breakfast | 22–30% |
| Seafood-led menu | 35–45% |
| Bar drinks | 15–25% |
These are operating ranges, not rules. A 38% food cost on a high-volume dish can be more profitable than 24% on one nobody orders — always look at contribution margin per dish alongside the percentage.
Four mistakes that break the formula
- Ignoring yield loss. Trim and cooking loss is real cost: poultry commonly loses 15–20% and whole fish 30–40%. Cost the usable gram, not the purchased gram.
- Stale supplier prices. A recipe costed six months ago silently drifts. Re-cost when invoices move.
- Only tracking theoretical cost. Compare recipe cost against actual COGS for the period; the gap is waste, over-portioning or shrinkage.
- Pricing in isolation. A perfect 30% food cost still fails if local competitors sell the same dish for 20% less — or if you left money on the table.
Check your price against the market
Pricora costs your recipes and compares the result with real restaurant prices collected from public sources, so you can see whether your food cost target and your local market actually agree.
Analyze a dish freeFrequently asked questions
What is the food cost formula?
Food cost percentage = (cost of ingredients ÷ menu selling price) × 100. If a dish uses $3.60 of ingredients and sells for $12.00, the food cost is 30%.
What is the formula for food cost of goods sold?
For a period: COGS = beginning inventory + purchases − ending inventory. Period food cost % = (COGS ÷ food sales) × 100. Use the per-dish formula for menu engineering and the period formula for P&L control.
What is a good food cost percentage?
Most full-service restaurants target 28–35%. Quick service and pizzerias usually run 20–28%, while seafood-heavy menus can sit at 35–45%. The right number is the one that still leaves room for labour, rent and profit.
Why is my actual food cost higher than my recipe cost?
Theoretical cost comes from recipes; actual cost includes yield loss, over-portioning, waste, comps and theft. The gap between the two is where most lost margin hides — track both and investigate the difference.
How do I use the food cost formula to set a menu price?
Divide the ingredient cost by your target food cost percentage: price = ingredient cost ÷ 0.30 for a 30% target. Then sanity-check the result against what comparable restaurants in your area actually charge.
Related reading: Food cost en restaurantes (ES) · Escandallo paso a paso