The food cost formula
Plate cost (or recipe cost) is what every ingredient on the plate cost you. Food cost percentage is that number divided by the menu price. Flip it around and you get the menu price for any target.
cost per unit = case price ÷ amount in case ingredient cost = cost per unit × amount used ÷ usable share food cost % = plate cost ÷ menu price price to charge = plate cost ÷ target food costA worked example
A 40 lb case of chicken breast at $120 is $3.00 a pound. Six ounces is 0.375 lb, or $1.13. If you lose 10% to trimming, you have to buy more to get six usable ounces, so the real cost is $1.13 ÷ 0.90 = $1.25. Add five ounces of fries from a $45, 30 lb case ($0.47) and the plate costs $1.72. At a 30% target that's $5.73, rounded up to $6.00.
What's a good food cost?
Many full-service restaurants aim for roughly 28% to 35%. Steak and seafood run higher; pasta, pizza, and fried items run lower. What matters most is the dollars left after food, since that's what pays labor and rent.
Food cost % for the whole kitchen
For a month instead of one plate, use what you actually used: (starting inventory + purchases − ending inventory) ÷ food sales. If that runs well above what your plate costs say, the gap is waste, over-portioning, comps, or theft.
Why trim loss matters
Whole chicken, produce, and cuts with bone or fat lose weight before they hit the plate. Skipping yield is the most common reason a menu that looks like 30% really runs 34%.
Questions owners ask
Can I mix cups and pounds?
No. A cup of rice and a cup of lettuce weigh very different amounts, so the calculator only converts weight to weight and volume to volume. If your case is in pounds, weigh the portion.
Should I include sides, sauces, and bread?
Yes. Small things add up. Add each one as its own ingredient, even if it's a few cents.
How often should I re-cost?
Whenever a big supplier price changes, and at least a few times a year for your top sellers.