Food cost percentage is the ratio of a menu item’s ingredient cost to its selling price. It is one of the measures restaurants rely on most when setting prices.
To calculate it correctly, the recipe should be written out with exact quantities and current purchase prices for every ingredient. Sauces, sides and waste belong in the cost too.
Because commission and packaging are added on food delivery platforms, a food cost that looks acceptable in store may leave no profit on a platform.
FORMULA
Food cost % = Ingredient cost ÷ Selling price × 100
EXAMPLE
If a dish costs 120 TRY in ingredients and sells for 400 TRY, its food cost is 30%.
PRACTICAL TIPS
- 01Write recipes down with exact quantities.
- 02Update costs when ingredient prices change.
- 03Calculate the platform price separately.