Food Cost Calculation: Control Your Food Costs
5 min read
2 sections
Food Cost is the percentage of ingredient costs relative to the selling price. Optimal rate: 25-35%. If higher, the restaurant is losing money.
Table of Contents
Food Cost Formula
Food Cost (%) = (Cost of Ingredients / Selling Price) Γ 100. Example: dish costs $5.00, ingredients cost $1.50. Food cost = 30%.
How to Reduce Food Cost
Methods: 1) Portion optimization, 2) Supplier management, 3) Waste control, 4) Seasonal menus.
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