Food Cost Calculator
- Food cost
- Gross profit
That is above your 30% target. At 30% food cost would be $11,400.00, $1,100.00 less.
How the food cost calculation works
Count what you used
Food cost = beginning inventory + purchases − ending inventory. $8,000 + $12,000 − $7,500 = $12,500.
Divide by food sales
$12,500 ÷ $38,000 = 32.9%. Use food sales only, so bar sales don't hide a high kitchen cost.
For one dish, cost the plate
Add the cost of every ingredient in one portion, then divide by the menu price. $4.20 ÷ $14 = 30%.
Compare with your target
At a 30% target, $38,000 of food sales allows $11,400 of food cost, so this week ran $1,100 over. Track the number weekly to spot waste, theft or supplier price rises.
Worked example. Starting with $8,000 of food, buying $12,000 and ending with $7,500 means $12,500 of food was used. Against $38,000 of food sales that is a 32.9% food cost, $25,500 of gross profit, and $1,100 above a 30% target.
Food Cost FAQ
What is the food cost formula?
Food cost = beginning inventory + purchases − ending inventory. Food cost percentage = food cost ÷ food sales × 100. Count inventory at cost, on the same day of the week each period.
How do I calculate food cost percentage?
Divide food cost by food sales and multiply by 100. $12,500 ÷ $38,000 = 32.9%.
How do I cost a dish?
List every ingredient in one portion, multiply each quantity by its unit cost, and add them up. Divide that plate cost by the menu price for the dish's food cost percentage.
What is a good food cost percentage?
There is no official standard. It depends on your menu and prices: dishes built on expensive proteins cost more to make than ones built on flour, rice or coffee. A better test is whether the rest covers labor, rent and profit. At 30% food cost, each $1 of food sales leaves 70 cents. For context, US listed restaurant companies had a 32.24% gross margin in January 2026 (NYU Stern), but their cost of sales can include more than food, so it is not a food cost benchmark.
How do I price a dish for a target food cost?
Divide the plate cost by the target. A $4.20 plate at a 30% target needs a $14 menu price, since $4.20 ÷ 0.30 = $14. The menu price calculator does this for a whole dish.
Why is my actual food cost higher than my plate costs?
Plate costs assume perfect portions. Waste, spoilage, staff meals, comps and theft all add to the inventory-based number.
Should I count drinks in food cost?
No. Track beverage cost separately with a pour cost. Mixing them in can hide a high kitchen cost behind bar sales.
Sources: NYU Stern (Damodaran): Margins by sector, US, January 2026