Food Cost Calculator Formula

Food Cost Formula:

\[ \text{Food Cost %} = \left( \frac{\text{Cost}}{\text{Sales}} \right) \times 100 \]

Food Cost Percentage:

Unit Converter ▲

Unit Converter ▼

From:	To:

1. What is the Food Cost Formula?

The Food Cost Percentage formula calculates the ratio between the cost of ingredients and the revenue generated from selling food items. It's a key metric in restaurant management and food service operations.

2. How Does the Calculator Work?

The calculator uses the food cost formula:

\[ \text{Food Cost %} = \left( \frac{\text{Cost}}{\text{Sales}} \right) \times 100 \]

Where:

\( Cost \) — Total cost of ingredients (USD)
\( Sales \) — Total revenue from food sales (USD)

Explanation: The formula shows what percentage of your sales revenue is spent on food ingredients.

3. Importance of Food Cost Calculation

Details: Monitoring food cost percentage helps restaurant owners and managers maintain profitability, set menu prices, and control inventory costs.

4. Using the Calculator

Tips: Enter the total cost of ingredients and total sales revenue in USD. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is a good food cost percentage?
A: Typically 25-35% is considered good, but this varies by establishment type and menu pricing strategy.

Q2: How often should I calculate food cost?
A: Most restaurants calculate it weekly or monthly to monitor trends and make adjustments.

Q3: Does this include labor costs?
A: No, this formula only calculates the cost of food ingredients relative to sales.

Q4: What if my food cost percentage is too high?
A: Consider portion control, waste reduction, supplier negotiations, or menu price adjustments.

Q5: Should I include beverages in this calculation?
A: Typically no - beverage costs are usually calculated separately as they often have different margins.