Food business · Menu pricing
Food Cost Calculator
Cost a dish, see your food-cost percentage and profit per plate, and price to the target your operation needs.
Last verified: · Standard industry definitions · by Felix Oluwakeye
- Formula
- cost ÷ price × 100
- Restaurant target
- 28–35%
- Reverse price
- cost ÷ target%
Your dish
Reverse: price for a target food cost
Results
- Food cost
- –
- Gross profit per plate$0.00
- Gross margin–
- Menu price for your target–
Most full-service restaurants target a 28–35% food cost; bars and bakeries run lower. Food cost is the inverse of margin: 30% food cost = 70% gross margin before labor and overhead.
Food cost % = ingredient cost ÷ menu price × 100. A dish costing $3.50 sold at $12.50 runs a 28% food cost — inside the 28–35% range most full-service restaurants target. To price for a target, divide cost by the target percentage. (Rates verified .)
| Fee | Rate | Applies to |
|---|---|---|
| Full-service restaurant | 28–35% | Plated dishes, table service |
| Quick service / fast casual | 25–30% | Counter service, higher volume |
| Bar / beverages | 18–24% | Cocktails, beer, wine |
| Bakery / café | 20–30% | Baked goods, coffee |
| Food truck | 28–33% | Limited menu, mobile overhead |
Worked example: pricing a $3.50-cost dish
- Your plate costs $3.50 in ingredients (recipe-costed, including waste).
- At a menu price of $12.50: food cost = 3.50 ÷ 12.50 = 28%.
- Gross profit = $9.00 per plate (72% gross margin) — before labor and overhead.
- Reverse: to hold a 30% target, price = 3.50 ÷ 0.30 = $11.67 → round to $11.95.
A 28% food cost on this dish leaves $9.00 per plate to cover labor, rent and profit. Price from the cost up, not from the competitor's menu down.
Frequently asked questions
How do I calculate food cost percentage?
Divide the ingredient cost of the dish by its menu price and multiply by 100. A $3.50-cost dish sold at $12.50 runs 28%. Cost the full recipe — every component, garnish and expected waste — or the percentage flatters you.
What is a good food cost percentage?
Most full-service restaurants target 28–35%; quick service 25–30%; bars 18–24%. Lower is not automatically better — a steakhouse happily runs 40% food cost on a high-dollar plate because the gross profit per cover is what pays the bills.
How do I price a menu item from a target food cost?
Divide ingredient cost by the target percentage: $3.50 ÷ 0.28 = $12.50. The calculator's reverse field does this, and psychological rounding ($12.50 → $12.95) is normal practice on top.
Is food cost the same as gross margin?
They are mirror images: 30% food cost = 70% gross margin. Food cost only counts ingredients — labor, packaging and overhead come out of the remaining margin, which is why a dish can hit its food-cost target and still lose money at low volume.
Page changelog
- — Page published; formulas follow standard industry definitions (cost ÷ price), target ranges per restaurant-industry norms.