Restaurant Food Cost Percentage Calculator
Example: Cost of goods sold (food): 9000 $ · Food sales revenue: 30000 $ · Target food cost: 28 %
| Food cost percentage | 30.00% |
| Gross profit on food | $21,000 |
| Sales needed to hit target | $32,143 |
Worked example
If your kitchen used $9,000 of food to generate $30,000 in food sales, your food cost percentage is 30% and your gross profit is $21,000. To hit a tighter 28% target on that same $9,000 of goods, you would need about $32,143 in sales — roughly $2,143 more revenue, reachable through modest menu-price increases, portion control, or reducing waste. The lever cuts both ways: cutting the cost of goods to $8,400 also lands you at 28%.
Frequently asked questions
What is a good food cost percentage?
It varies by concept, but many full-service restaurants target roughly 28 to 35%. Pizza and pasta concepts often run lower because ingredients are cheap relative to price, while steak and seafood houses run higher. Compare yourself to peers in your category, not to restaurants in general.
What counts as cost of goods sold here?
The cost of the food ingredients actually sold in the period — typically beginning inventory plus purchases minus ending inventory. It does not include labor, rent, or utilities. Keep beverages separate if you want a clean food-only ratio, since drinks usually carry a very different cost structure.
How do I lower a food cost that is too high?
The main levers are raising menu prices, tightening portion sizes, reducing waste and over-prep, renegotiating with suppliers, and re-engineering the menu toward higher-margin dishes. Track the percentage weekly so you catch drift before it erodes a month of profit.
Why compute the sales-needed figure?
It reframes the target as a concrete revenue goal. Knowing you need about $2,000 more in sales on the same ingredient spend is more actionable than a bare percentage, and it helps you weigh a price increase against a sales push.