Food Cost Percentage Calculator
Food cost percentage is one of the most fundamental metrics in restaurant and catering management. It measures the proportion of each menu item's selling price that goes toward the cost of its ingredients. The formula is simple: food cost percentage equals ingredient cost divided by menu price, expressed as a percentage. The restaurant industry typically targets 28% to 35% food cost, meaning that for every dollar of revenue, 28 to 35 cents covers ingredient cost. The remaining 65 to 72 cents must cover labour, rent, utilities, and profit. This calculator works in two modes: enter ingredient cost and menu price to calculate the actual food cost percentage and gross profit; or enter ingredient cost and your target food cost percentage to calculate the suggested menu price. Both modes show gross profit per serving in dollars and as a percentage. Note that this calculator addresses food cost only; total profitability requires accounting for all operating costs.
Food cost percentage benchmarks
| Restaurant type | Typical food cost % |
|---|---|
| Fast food / quick service | 25% to 30% |
| Fast casual | 28% to 32% |
| Casual dining | 28% to 35% |
| Fine dining | 30% to 35% |
| Bar / gastropub (food) | 25% to 30% |
| Catering | 25% to 35% |
Food cost: frequently asked questions
What is food cost percentage?
Food cost percentage is the ratio of the cost of ingredients in a dish to the menu price of that dish, expressed as a percentage. Formula: food cost % = (ingredient cost / menu price) * 100. A dish that costs $4.50 in ingredients and sells for $15.00 has a food cost percentage of 30%. Lower percentages indicate higher profit margins from that dish.
What food cost percentage should a restaurant target?
The restaurant industry generally targets a food cost percentage of 28% to 35% for food items. Fine dining tends to run 30% to 35% as it uses higher-quality ingredients. Fast casual may target 28% to 32%. Bar food often runs lower. These are guidelines; the total profitability depends on all costs (labour, rent, utilities) combined with food cost.
How do I calculate the menu price from a target food cost?
Divide the ingredient cost by the desired food cost percentage (expressed as a decimal). For example, if ingredients cost $5.25 and you want a 30% food cost: menu price = $5.25 / 0.30 = $17.50. This calculator performs this calculation when you enter the ingredient cost and target percentage.
What is gross profit per serving?
Gross profit per serving is the menu price minus the ingredient cost. It represents how much each serving contributes to covering labour, overhead, and net profit before those costs are subtracted. A dish priced at $18 with $5 in ingredients generates $13 gross profit per serving. Gross profit percentage = gross profit / menu price * 100.
How should I handle waste and portioning in food cost calculations?
Ingredient cost should include a waste allowance: if a whole chicken costs $8 and yields 60% usable meat, the true ingredient cost for the edible portion is $8 / 0.6 = $13.33 per usable pound. Also account for portion size precisely: if a dish uses 6 oz of protein and you buy protein at $10/lb, the cost is (6/16) * $10 = $3.75. This calculator uses the ingredient cost you enter, which should already account for waste and portioning.
References
- US Small Business Administration: Manage your finances.
Reviewed by the CalculatorHub team, edited by James Graham, 14 June 2026. See our methodology.