How to Calculate and Improve Your Restaurant Food Cost Percentage (Free Calculator Inside)

Food cost percentage is one of the most important numbers in your restaurant’s business — and one of the easiest to overlook. If your margins feel tight, your food cost is the first place to look.

So, what is food cost percentage?

It’s the percentage of your sales that goes toward the actual cost of ingredients. The formula is:

Food Cost % = (Cost of Ingredients ÷ Food Sales) × 100

Let’s say you spent $4,000 on food last month and your total food sales were $12,000.Your food cost percentage = (4,000 ÷ 12,000) × 100 = 33.3%

That’s slightly high. Most restaurants aim for 28–32%, depending on cuisine and concept.

� Need help crunching the numbers? Use our free online food cost calculator at Deliver Local. Just enter your ingredient costs and sales, and get instant insights.

How to improve your food cost percentage:

· Trim underperforming items. If it’s not selling or it has a low margin, cut it or rework it.

· Monitor waste. Over-portioning and spoilage can quietly destroy your margins.

· Rework recipes. Use versatile ingredients across multiple dishes and substitute expensive ones when needed.

· Update pricing. Costs change — and so should your menu pricing. Don’t let inflation eat your profits.

� With Deliver Local, you can also make real-time menu updates when your pricing changes — either on your own or by requesting support. We’ll handle the edits for you, so your costs stay in sync with your menu.

Understanding your food cost isn’t just about staying afloat — it’s about running a smarter, more profitable business.