Restaurant food cost calculator
($4,000.00 + $9,000.00 − $3,500.00) ÷ $32,000.00 = 29.7%
Inside the common 28% to 35% target.
Food cost percentage = (starting inventory + purchases − ending inventory) ÷ food sales × 100. Most restaurants aim for 28% to 35% (ChowNow). Example: $4,000 starting inventory plus $9,000 in purchases minus $3,500 left at the end of the month means $9,500 of food was used. Against $32,000 in food sales, that is a 29.7% food cost. Use the same period for every number, usually one week or one month, and count inventory at cost, not menu price.
How do you calculate food cost percentage?
Add your starting food inventory to everything you bought during the period, subtract what's left at the end, and divide by food sales for the same period. The top half is the cost of the food you actually used. ChowNow writes it as food cost ÷ total food sales × 100 (ChowNow).
What is a good food cost percentage for a restaurant?
28% to 35% is the common target. Pizza and pasta places often run lower because their ingredients are cheap, and steak or seafood places run higher. What matters most is your own trend: a food cost that creeps up two points a month usually means waste, portion drift or a supplier price increase.
Is food cost the same as plate cost?
No. Plate cost is what the ingredients in one dish cost. Food cost percentage is for the whole kitchen over a period, so it includes waste, spoilage, staff meals and comps. If your plate costs say 28% but your food cost says 34%, the gap is food that never got sold. To price a single dish, use the menu price calculator.
How do delivery apps affect food cost?
They don't change food cost, but they change what's left after it. A dish at a 30% food cost sold through DoorDash Plus also loses 25% to commission (DoorDash pricing), leaving 45 cents of each dollar for labor, rent and profit instead of 70. That's why many restaurants price higher on the apps.
How often should a restaurant calculate food cost?
Weekly is best, monthly at minimum. Count inventory on the same day and time each period, before deliveries arrive, so the numbers compare.
What a 1 point drop in food cost is worth
On $32,000 a month in food sales, every point of food cost is $320 a month, $3,840 a year. Use the profit margin calculator to see where it lands on your bottom line.
Sources
- ChowNow: guide to restaurant food cost
- DoorDash merchant pricing (Basic, Plus, Premier plans)
- Toast: average restaurant profit margin
Prices and fees were checked on October 18, 2026. They change, so check the source before you decide.