Food cost percentage formula for restaurants: a worked guide.
Menu prices that feel right are usually the ones that quietly kill a restaurant. The formula is simple, but the arithmetic is honest.
Published 3 August 2026 · Written by the TableHub team · 6 minute read
The formula in plain language
Food cost percentage tells you how much of the menu price is eaten by the ingredients on the plate. It is calculated as:
Food cost % = (Total recipe cost ÷ Menu price) × 100
Total recipe cost means every ingredient that lands on the plate or in the cup, including the garnish, the paper liner, and the splash of oil that is part of the standard build. Menu price is what the guest pays before tax, tip, or any third-party platform fees.
A 30% food cost percentage means thirty cents of every dollar you collect goes straight back out to the food vendor. The remaining seventy cents is the gross profit that has to cover labor, rent, utilities, marketing, and hopefully something left over for you.
Three worked dishes
These numbers are realistic, not aspirational. They show how the same percentage can mean different things at different price points.
Cheeseburger basket
Menu price: $14.50- Bun, patty, cheese, lettuce, pickle$3.25
- Fries and oil portion$0.85
- Paper and condiments$0.40
A casual lunch staple. The food cost looks healthy, but the labor to run a lunch shift is the real pressure on this dish.
Pan-seared salmon
Menu price: $28.00- 6 oz salmon fillet$6.40
- Seasonal vegetables$1.60
- Grain and sauce$1.20
Fish cost is volatile. The 32% food cost today can be 38% next week on the same menu price, which is why salmon specials exist.
Margherita pizza
Menu price: $18.00- Dough, sauce, cheese$2.10
- Basil and olive oil$0.40
- Wood and box$0.60
Pizza wins on low food cost and high volume, but the oven, the dough labor, and the box are part of the real cost story.
Common mistakes that make the formula lie
- Ignoring the stuff that is not on the plate. The oil in the fryer, the butter in the pan, and the sauce that ends up in the dish all count. If you only price the center-of-the-plate protein, your real food cost is 3 to 5 points higher than the spreadsheet says.
- Using a menu price before platform fees. A $20 menu price becomes $14 after a 30% delivery fee. If you run the formula against $20, the food cost looks fine; if you run it against the $14 you actually collect, the dish is bleeding.
- Forgetting portion drift. The first month of a new menu is usually the most accurate because the cooks are still measuring. Six months in, portions creep up and the actual food cost is higher than the original recipe card.
- Chasing the percentage instead of the dollar. A 22% food cost on an $11 sandwich leaves $8.58. A 34% food cost on a $32 pasta leaves $21.12. The lower percentage is not the winner.
When a 28% food cost is too low
A low food cost percentage is not always good news. It can mean the portion is too small, the quality is too low, or the price is too high for the neighborhood. It can also mean the menu is loaded with cheap starches and short on proteins, which trains the guest to see the restaurant as a budget option.
The better question is: does this dish leave enough gross profit to cover its share of the kitchen labor, the rent, and the utilities? If it does, a 33% food cost is healthier than a 25% food cost that nobody orders.
Want to run your own numbers? Use the free food cost calculator to price out any dish, add every ingredient, and see how a 30% platform fee changes the final profit. Then compare it to commission-free online ordering to see what direct pickup would leave on the table.
Common questions
- What is the formula for food cost percentage?
- Food cost percentage = (total recipe cost ÷ menu price) × 100. The recipe cost is the sum of every ingredient that goes into the dish as it reaches the plate. The menu price is what the diner pays before tax, tip, or platform fees.
- What is a good food cost percentage for a restaurant?
- Most full-service restaurants run between 28% and 35% on food. Bars and pizza can run lower; fine dining and seafood often run higher. The real target is the one that leaves enough gross profit to cover labor, rent, and utilities, not a magic number from a textbook.
- Should I include waste and trim in the recipe cost?
- Yes. If a portion of onion costs $0.20 but you trim and throw away 20% of the onion, the real cost is $0.25. The same rule applies to protein trim, bread heels, and anything that is paid for but not plated.
- Does a 28% food cost mean the dish is profitable?
- Not necessarily. A 28% food cost on a $12 menu price leaves only $8.64 to cover labor, rent, utilities, and profit. A 28% food cost on a $38 menu price leaves $27.36. The margin matters more than the percentage.
Own the margin before the platform takes it.
TableHub gives you direct pickup orders on your own domain, so the $21 gross profit from a $32 pasta stays in your account instead of becoming a 30% marketplace fee.