About the Food Cost Calculator

Food cost percentage is the single most watched number in restaurant operations: ingredient cost divided by menu price. At $3.50 of ingredients on a $12 dish, food cost is 29.2% — inside the healthy 25–35% band — leaving $8.50 of gross profit before labor, rent, and overhead.

Using the Numbers

Price a menu from cost upward (cost × 3 to 3.5 for ~28–33%), then verify with the percentage after the fact. Watch for ingredient inflation creeping food cost past 35% — that is the trigger to reprice, reformulate, or renegotiate suppliers, not to quietly shrink portions.