Restaurant Operator Lab RUN THE RESTAURANT BETTER

Restaurant Food Cost Percentage Calculator

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Food cost percentage

Calculate food cost as a percentage of food sales, plus food gross profit after food cost.

Use food cost and food sales from the same period. Nothing is saved.

Beginning food inventory + purchases − ending food inventory, for the same dates as food sales.

Use food sales, not total sales that include beverages.

Result

Enter both amounts, then calculate.

Formula

Food cost % = Cost of food used ÷ Food sales × 100

Food gross profit = Food sales − Cost of food used

Food gross profit is not net restaurant profit. Labor, occupancy, utilities, card fees, packaging and other operating costs are still outside this number.

Last calculation review: October 2026

How we check formulas →

Need to track multiple periods? The workbook is separate from this free calculator. See workbook options →

Worked example

Illustrative only, not an industry target. If food used is $8,400 and food sales are $28,000, food cost is 30.00% and food gross profit is $19,600.

What to do next

  1. Compare against your own prior period using the same inclusions.
  2. Check supplier prices, pack sizes, waste, portions and comps if the percentage moved.
  3. Use plate cost and prime cost to diagnose the cause before changing menu prices.

Questions operators ask

Should beverage sales be included?
No. Use food sales when the numerator is food cost.

Does this include labor?
No. Labor belongs in labor cost and prime cost analysis.

Is a lower percentage always better?
No. Price, portion, sales mix and inventory-count errors can move the percentage. Use it as a diagnostic, not a universal target.

Go deeper

Read How to Control Food Cost in a Small Restaurant or use the Food Cost Worksheet for a one-period operating review.