Food cost percentage: formula, examples and targets

By mise · Updated September 29, 2026

Quick answer: food cost percentage = (beginning inventory + purchases − ending inventory) ÷ food sales × 100. Most full-service restaurants run 28–35%, pizzerias 25–30%, steakhouses 35–42%. For a single dish, plate cost ÷ menu price × 100.

Food cost is the number that tells you whether the menu is priced right and the kitchen is running tight. There are two ways to calculate it — for the whole restaurant and for a single dish — and you need both.

The formula for the whole restaurant (actual food cost)

Food cost % = (beginning inventory + purchases − ending inventory) ÷ food sales × 100

Example: beginning inventory $8,200, purchases $12,500, ending inventory $7,900. Cost of food used = $12,800. Food sales $41,000. Food cost = 12,800 ÷ 41,000 = 31.2%.

This is your actual food cost: what you really spent, waste and mistakes included. It needs two physical counts and every invoice for the period.

The formula for one dish (plate cost)

Plate cost % = cost of the ingredients in one portion ÷ menu price × 100

Example: a burger uses $3.10 of beef, bun, cheese, sauce and fries. Menu price $14. Plate cost = 3.10 ÷ 14 = 22.1%.

Averaging plate cost by what you sell gives your theoretical food cost. The gap between theoretical and actual is waste, over-portioning, theft and pricing errors — the money to chase.

Typical targets

Type of venue	Typical food cost
Bar (beverage cost)	18–24%
Pizzeria	25–30%
Café / coffee shop	25–32%
Burger / fast casual	28–32%
Full-service restaurant	28–35%
Sushi / Japanese	30–38%
Steakhouse	35–42%

These are reference ranges. The most useful comparison is with your own previous weeks.

How to lower food cost

Count weekly so you see problems while they're small.
Log waste with a reason — spoilage and overproduction are the easiest wins.
Portion with scales and scoops, and keep recipe cards up to date.
Reprice or re-engineer dishes whose plate cost drifted when supplier prices rose.
Order to par so cash isn't sitting in the walk-in.

Try the food cost calculator, or let mise do it: counts by scanning, purchases from invoice photos, and food cost calculated when you close the count.

Count your stock by scanning barcodes

Point the camera and the product comes up complete: name, brand, category, size and photo — the mise AI finds it from the barcode or a photo. 7-day free trial, no card.

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Keep reading How to do restaurant inventory, step by step Restaurant waste log: free template and how to track waste Food cost calculator Restaurant COGS: how to calculate cost of goods sold All guides

Frequently asked questions

What is a good food cost percentage?

For most full-service restaurants 28–35%. Pizzerias and cafés run lower, steakhouses and sushi higher. Compare with your own history first.

How do you calculate food cost percentage?

(Beginning inventory + purchases − ending inventory) ÷ food sales × 100. For one dish: ingredient cost ÷ menu price × 100.

What is the difference between food cost and COGS?

In restaurants they are usually the same calculation. COGS often includes beverages too, while food cost refers to food only.

Does food cost include labor?

No. Food cost is ingredients only. Food plus labor is called prime cost, usually targeted at 55–65% of sales.