FAQs
Most restaurant owners across the industry aim for a food cost percentage between 28 and 35%, but every restaurant is unique. This range is a general guideline, but your restaurant may have different needs based on the type of food you serve and where you are located.
What is the formula for actual food cost? ›
The formula for calculating food cost percentage is: Total food cost percentage = (total cost of goods sold / total revenue) x 100. Before you can use this formula, you need to gather some information about your restaurant. Start by taking an inventory count with the costs for each item.
What is ideal food cost vs actual food cost? ›
Compare your Ideal and Actual Food Cost Percentage
For example, your ideal food cost percentage might be 25%. Your actual food cost percentage might be 30%. That's a difference of 5% which is down to theft, waste or over-purchasing.
What is the formula for food cost percentage FCP? ›
The formula for food cost percentage (FCP) given selling price (SP) and food cost (FC) is: FCP = (FC / SP) x 100.
How much should I spend on groceries for one person? ›
Average grocery cost per month for 1 person in a household
Considering the Thrifty and Liberal plan averages, the monthly grocery cost for an adult male falls between $275.63 and $434.33, while the average for an adult female ranges from $238.46 to $384.93.
What is the best food cost ratio? ›
In simple terms, food cost refers to the ratio between money spent on raw ingredients for menu items and the revenue generated from the sale of those dishes. Food cost (cost/sales) is usually expressed as a percentage, called a food cost percentage. Profitable restaurants usually land between 28% and 35% on food costs.
How do you calculate true food cost? ›
The formula for how to calculate restaurant food cost percentage is (Total cost of goods sold / Total food sales) x 100 = Total food cost percentage for a period of time.
What is the easiest way to calculate food cost? ›
Here's the formula for total food cost percentage:
- Total Food Cost Percentage = (Total Cost of Goods Sold / Total Revenue) x 100.
- CoGS= [(Beginning Food and Beverage Inventory Value) + (Inventory Purchase Value)] – (Ending Inventory Value)
A Q factor is the cost of anything extra required in the production and service of the menu item. These include complementary items like bread, butter, and even salt and pepper. Typical Q-factors add about 10% to the food cost.
Is 30% food cost good? ›
For a restaurant to be profitable, most restaurant business operators prefer the food costs to be between 28 and 35 percent of the revenue. There is no defined average food cost percentage, but 28 to 35 percent has been the standard for the US-based food business operators as well.
Table of Contents
- Eating Healthy on a Budget: Plan Your Meals.
- Stick to Your List.
- Buy in Bulk.
- Invest in Leftovers.
- Embrace Frozen Fruits and Vegetables.
- Buy Cheaper Cuts of Meat—Or Less Meat Overall.
- Learn to Love the Store Brand.
Generally it's less expensive to cook at home. The thing you need to look out for is buying too much and having too much spoiled food and waste. The best way to do this is to make a meal plan and plan for leftovers, and make a shopping list.
What is the ideal food cost percentage? ›
In general, restaurants should keep their food cost percentage of between 25 and 40%. That means that for every dollar of revenue a restaurant earns, it will have spent between 25 and 40 cents to buy the ingredients that make up that dish.
How do you calculate standard food cost? ›
How to calculate ideal food cost? To calculate the ideal food cost, first determine the food cost of each menu item. Then multiply the cost of each menu item by the number of times it was sold in a given period of time. In other words, you multiply by the sales mix.
What is the benchmark for food cost percentage? ›
Industry standards dictate that your food cost percentage should be between 25-40%. Most restaurants aim to keep their food cost percentage at around 30%. In general, higher food cost percentages are acceptable for fine dining restaurants and lower food cost percentages more desirable for quick service restaurants.
What is the standard for food cost? ›
What is a good food cost percentage? To run a profitable restaurant, most owners and operators keep food costs between 28 and 35% of revenue. With that said, there is no such thing as an ideal food cost percentage; it varies depending on the type of food they serve and the restaurant's overhead and operating expenses.
What is a realistic budget for food? ›
According to the USDA guidelines, you might spend $979 a month on a thrifty plan, $1,028 on a low-cost plan, $1,252 on a moderate-cost plan and $1,604 on a liberal plan.
How much food is the right amount? ›
A clenched fist is about 1 cup — and that's the amount experts recommend for a portion of pasta, rice, cereal, vegetables, and fruit. A meat portion should be about as big as your palm. Limit the amount of added fats (like butter, mayo, or salad dressing) to the size of the top of your thumb.
