1. What is Food Cost Percentage?

Food Cost Percentage is a key metric in the restaurant and food service industry that shows what percentage of sales revenue is spent on food ingredients. It helps businesses assess their profitability and cost control.

2. How Does the Calculator Work?

The calculator uses the food cost percentage formula:

Where:

• Food Cost — Total cost of food ingredients used
• Sales — Total revenue from food sales

Explanation: The formula calculates what portion of your sales revenue is being spent on food ingredients.

3. Importance of Food Cost Percentage

Details: Maintaining an optimal food cost percentage is crucial for restaurant profitability. Industry standards typically range between 25-35%, though this varies by establishment type.

4. Using the Calculator

Tips: Enter your total food cost and sales figures in dollars. Both values must be positive numbers. The calculator will show your food cost as a percentage of sales.

5. Frequently Asked Questions (FAQ)

Q1: What is a good food cost percentage?
A: Most restaurants aim for 28-35%. Fine dining may have higher percentages (35-40%) while fast food is often lower (25-30%).

Q2: How often should I calculate food cost percentage?
A: Ideally weekly or monthly to monitor trends and catch problems early.

Q3: What's included in food cost?
A: All ingredients used in menu items, including spices and garnishes. Doesn't include labor or overhead.

Q4: Why is my food cost percentage high?
A: Possible causes include waste, theft, incorrect portioning, or menu prices that are too low.

Q5: How can I improve my food cost percentage?
A: Strategies include reducing waste, negotiating with suppliers, adjusting portion sizes, or revising menu prices.