Restaurant food cost formula
For one dish: food cost % = food cost ÷ selling price × 100. For a week or month, use inventory movement (COGS): food cost % = (beginning inventory + purchases − ending inventory) ÷ food sales × 100.
Example (per dish): food cost ₹120, selling price ₹400. 120 ÷ 400 × 100 = 30%. ₹280 remains before other restaurant costs.
How to interpret the result
A 30% food cost means ₹30 of every ₹100 of that dish’s selling price is ingredients. It does not tell you whether the restaurant made money that day. If the percentage is higher than you can afford, you can raise the price, reduce the portion, change the recipe, or use the menu pricing calculator to test a new starting price.
Restaurant use cases
Use per-dish mode when costing a new plate. Use period mode after a stocktake. Pair this with recipe costing when ingredients are shared across dishes, and with the food waste calculator when the gap is in the bin rather than on the plate.
These calculators use standard restaurant maths for education. They are not accounting, tax or legal advice — confirm important decisions with your accountant or adviser.
Frequently asked questions
How do you calculate food cost percentage?
Divide the ingredient cost of one serving by the selling price, then multiply by 100. If food cost is ₹120 and the dish sells for ₹400, food cost % is 120 ÷ 400 × 100 = 30%.
What is food cost percentage?
It is the share of the selling price that goes to the food used to make the dish. The rest is not profit — it still has to cover salaries, rent, energy, packaging, commissions, tax, and waste.
Is 30% food cost right for every restaurant?
No. 30% is a common working example, not a rule. The right percentage depends on the restaurant concept, menu, location, pricing strategy, and operating costs.