Start with the number that matters
Food cost percentage tells you how much of each sales dollar is spent on the food you use. Calculate it over a consistent period: beginning inventory plus purchases minus ending inventory, divided by food sales.
A useful number is an accurate one. Count inventory at the same time each week, use current purchase prices, and compare food cost with food sales rather than total sales when possible.
Find the opportunities hiding in plain sight
Compare your actual food cost with your theoretical recipe costs. A gap can point to over-portioning, waste, unrecorded comps, theft, or changing supplier prices. Investigate the process before assuming the cause.
- ✓Standardize recipes and portion sizes.
- ✓Record waste, staff meals, and complimentary items.
- ✓Review supplier invoices and update recipe costs regularly.
- ✓Use older inventory first and make a plan for highly perishable ingredients.
Make it a habit, not a one-time project
Review the trend with your team every week. Pick one improvement, assign an owner, and measure the result. Your ideal percentage depends on your concept, menu, and other costs; use benchmarks as a conversation starter rather than a universal rule.
This guide is for educational purposes and is not financial or legal advice.
