What is food cost percentage?
Food cost percentage is the cost of food used divided by food sales, multiplied by 100. For example, $13,000 in food used on $40,000 in food sales is 32.5%.
See it in action.
Here's an example using the numbers already in the calculator:
- 01Gather your numbers.
Beginning inventory: $5000; Food purchases: $12000; Ending inventory: $4000; Food sales: $40000.
- 02Apply the formula.
(Beginning inventory + purchases − ending inventory) ÷ food sales × 100.
- 03Review the result.
Your estimated food cost percentage is 32.5%. Adjust the inputs to explore your own scenario.
Make the most of your numbers.
- Count inventory at the same time and use the same units each period.
- Compare food cost to food sales, excluding beverage sales where possible.
- Track waste, staff meals, and complimentary items to understand variances.
Frequently asked questions.
What does the food cost percentage calculator tell me?+
Food cost percentage is the cost of food used divided by food sales, multiplied by 100. For example, $13,000 in food used on $40,000 in food sales is 32.5%.
How often should I review this number?+
Review it whenever the underlying costs or assumptions change, and compare results consistently over time. The right frequency depends on your operation.
Is this result a substitute for financial advice?+
No. This calculator is an estimate for planning and education. Check your assumptions and consult a qualified professional when making financial or compliance decisions.
