How to Calculate Food Cost Percentage (With Real Examples)
Food cost percentage is the share of your revenue that goes to ingredients. Here is the formula, three worked examples, and the targets a 2026 operator should hit.
Food cost percentage is the percentage of menu-item revenue that is consumed by the cost of the ingredients. The formula:
Food cost % = (Cost of goods sold ÷ Revenue) × 100
Targets in 2026
| Type | Healthy % |
|---|---|
| Fine dining | 28–32% |
| Full-service casual | 28–35% |
| Pizzeria | 22–28% |
| Sushi / seafood | 30–40% |
| Pub / bar food | 28–32% |
| Coffee shop (food) | 25–30% |
Example 1: a single dish (Margherita)
Dough $0.40 + tomato $0.30 + mozzarella $1.10 + basil/oil $0.20 = $2.00 recipe. Menu $11.00. Food cost = 18.2%.
Example 2: a full week
COGS = 4,200 + 9,800 − 3,900 = $10,100. Revenue $48,500. Food cost = 20.8%.
Example 3: the silent killer
Sloppy ending inventory ($4,400 vs real $3,900) shows food cost as 19.8%. You think you are 1 point cheaper. On $48,500/week that is $485 of profit that does not exist.
How to lower food cost
- Recipe-cost every menu item quarterly.
- Weight your top 10 sellers in counts.
- Investigate any swing >2 points week over week.
- Reprice ruthlessly when an ingredient jumps >15%.
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