Blog · October 20, 2026
How to calculate food cost percentage
Food cost percentage tells you how much of each sales dollar goes to ingredients. There are two versions, and you need both.
1. Plate food cost percentage
Plate food cost % = plate cost ÷ menu price × 100
Add up what every ingredient on the plate costs at the portion you serve. If a pasta dish costs $3.36 to make and sells for $14.00, its food cost is 3.36 ÷ 14.00 = 24%.
2. Kitchen food cost for a period
Food cost % = (beginning inventory + purchases − ending inventory) ÷ food sales × 100
Example: $16,000 beginning inventory + $4,000 purchases − $17,000 ending inventory = $3,000 of food used. With $10,000 in food sales, food cost is 30%. Use food sales only, not alcohol.
Pricing to a target
Menu price = plate cost ÷ target food cost %. A $3.36 plate at a 30% target should sell for $11.20 or more.
What's a good number?
Many full-service restaurants aim for roughly 28–35%, but the right target depends on your concept, prices and labor. Watch the trend: if your period food cost is well above what your plate costs predict, look at waste, portioning and price increases from suppliers.
Run your own numbers with our free food cost calculator.