Food Cost Percentage: Definition, Calculation, and Optimization
Food Cost Percentage: Definition, Calculation, and Optimization
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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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