Food Cost / Restaurant Margin Calculator
Food & CookingCalculate food cost percentage and gross margin for a menu item.
Food Cost Percentage
Ingredient cost as a percentage of the menu price, a core restaurant profitability metric.
Gross Margin
$12.50
Gross profit per item, after ingredient cost only.
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Odeh Ahwal0people find this calculator helpful
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Odeh Ahwal0people find this calculator helpful
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Food & Cooking calculators
Frequently Asked Questions
What is a healthy food cost percentage for a restaurant?
Most restaurants target a food cost percentage between 28 and 35 percent, though this varies by cuisine type, with higher-end or protein-heavy dishes often running closer to the upper end of that range.
Does food cost percentage account for labor and overhead?
No, food cost percentage measures only ingredient cost relative to menu price. Labor, rent, utilities, and other overhead costs are tracked separately and together determine overall restaurant profitability.
How can a restaurant lower its food cost percentage?
Common strategies include portion control standardization, reducing food waste, negotiating better supplier pricing, and strategically adjusting menu prices on high-cost items without significantly affecting customer demand.
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