How to Calculate Restaurant Food Cost
A percentage, not a personality test for the chef.
How restaurant food cost percentage is calculated from opening inventory, purchases, closing inventory and food sales — plus dish-level costing and why the number moves.
Published by BYNOQ Restaurant Growth Academy10 min read
The period formula
Cost of food used is opening inventory plus purchases minus closing inventory. Divide that by food sales for the same period, then multiply by 100. That is food cost %. It is not profit. Rent and salaries are still waiting.
If you do not count closing stock, you are guessing. Guessing feels faster until the month you are surprised.
The dish formula
Add ingredient quantities × purchase prices, inflate for wastage, add packaging, divide by portions, then divide by selling price. That tells you whether a dish can carry its own food — not whether guests will order it.
Why the number rises
- Purchase prices moved and the menu did not.
- Portions drifted on a busy night.
- Wastage, spoilage or complimentary plates were not written down.
- Sales were under-recorded — the denominator shrank.
Frequently Asked Questions
1. What is a good restaurant food cost percentage?
There is no universal target. Concepts, cities and menus differ. Use your own recipes and a period inventory count. Treat “industry averages” as conversation, not a rule.
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