Food Cost Calculator
Calculate your food cost percentage and see how it compares to industry benchmarks. Keep your restaurant profitable.
1 Your Business
2 Enter Your Numbers
All ingredients & supplies bought
Revenue from food (excl. drinks if separate)
2 Inventory & Purchases
Value of stock at start of period
Value of stock at end of period
3 Your Food Cost Analysis
0%
Cost of Goods Sold
$0
Food Sales
$0
Gross Profit
$0
Industry Benchmark
Recommendations
Control labor costs too
Food cost is half the equation. Shifty helps you optimize shift schedules to keep labor costs in check β so both sides of your P&L stay healthy.
How to Calculate Food Cost for Your Restaurant
Food cost percentage is the portion of your revenue spent on ingredients. It's one of the most important metrics for restaurant profitability β and one of the easiest to let slip.
The Formula
Food Cost % = Cost of Goods Sold Γ· Total Food Revenue Γ 100
For a more accurate number, use the inventory method:
COGS = Beginning Inventory + Purchases β Ending Inventory
Food Cost Benchmarks by Business Type
| Business Type | Target Food Cost | Warning Level |
|---|---|---|
| Cafe / Coffee Shop | 25β35% | > 38% |
| Fast Casual | 25β30% | > 33% |
| Full-Service Restaurant | 28β35% | > 38% |
| Bar / Pub | 20β28% | > 32% |
| Bakery | 25β35% | > 38% |
| Pizzeria | 28β32% | > 35% |
5 Ways to Reduce Food Cost
- Standardize portions β use recipes with exact weights and measures
- Reduce waste β track spoilage, implement FIFO rotation
- Engineer your menu β drop low-margin dishes, promote high-margin ones
- Negotiate with suppliers β compare prices, buy seasonal produce
- Optimize scheduling β don't overstaff the kitchen during slow hours
Optimize your labor costs too
Food cost is only half the equation. Shifty helps you build smart shift schedules that keep labor costs in check β so both sides of your P&L stay healthy.
Frequently Asked Questions
What is a good food cost percentage?
Most restaurants aim for 28-35%. Cafes typically run 25-35%, and bars 20-28%. If your food cost exceeds 35%, review your portions, suppliers, and menu pricing.
How often should I calculate food cost?
Weekly for quick checks, monthly with full inventory counts for strategic decisions. Consistent tracking helps you spot problems before they eat into your profits.
What's the difference between food cost and COGS?
COGS (Cost of Goods Sold) is the dollar amount spent on ingredients. Food cost percentage is COGS divided by revenue, expressed as a percentage. Both measure the same thing β one in dollars, one as a ratio.