Restaurant Food Cost Calculator
Calculate food cost percentage and markup for restaurant menu items.
Essential for pricing and profitability.
Food Cost Analysis
Food cost percentage is the ratio of ingredient cost to the menu selling price. It is the most important metric for restaurant profitability.
Food Cost % = (Ingredient Cost / Selling Price) × 100
Markup = Selling Price / Ingredient Cost
Profit per Item = Selling Price − Ingredient Cost
Industry benchmarks:
- 25–30%: Ideal food cost for most restaurants
- 30–35%: Acceptable, common for full-service dining
- 35–40%: High — review pricing or suppliers
- 40%+: Unsustainable for most operations
Typical food costs by restaurant type:
- Fast food: 25–30%
- Casual dining: 28–35%
- Fine dining: 30–40% (offset by higher prices)
- Pizza: 20–25%
- Bakery/Cafe: 25–35%
To set a menu price from food cost:
Menu Price = Ingredient Cost / Target Food Cost %
Example: $3 ingredient cost at 30% target = $3 / 0.30 = $10 menu price