The short version
Food cost creeping above 32–35%? You’re bleeding profit on every ticket. The fix isn’t switching vendors or cutting portions to nothing — it’s plugging the four biggest leaks: waste, portion creep, theft, and lazy pricing. Attack those systematically and you’ll see real drops fast.
Step 1: Know your real number (most owners don’t)
You can’t fix what you don’t measure. Start here:
- Run a full physical inventory this week (not “when it slows down”).
- Calculate actual food cost %: (Beginning Inventory + Purchases - Ending Inventory) ÷ Total Food Sales.
- Do it weekly, not monthly. Monthly hides the bleeding.
- Use the Food Cost & Recipe Analysis calculators in The Vault for instant variance reports.
Step 2: Kill waste (the silent 3–5% killer)
- Implement a waste log today — every spoiled tomato, dropped steak, over-portioned rice goes on it with reason code.
- Review daily with the kitchen team — no blame, just facts.
- Most spots cut waste 40–60% in the first month just by shining a light on it.
- Use the free Restaurant Waste Log Template — print it, pin it, use it.
Step 3: Stop portion creep dead
Your recipes are worthless if the line doesn’t follow them.
- Buy portioning tools (scales, scoops, ladles) and make them mandatory — no “eyeballing.”
- Do random plate weighs twice a week — if a dish is over by 1 oz on average, that’s easily 2–3% food cost.
- Post recipe cost cards at every station — our Recipe Cost Card template is perfect for this.
- Tie portion control to bonuses — cooks hate waste too when it hits their tip pool.
Step 4: Catch theft before it becomes normal
Yes, it’s happening. 90% of operators have active theft — most just don’t know it yet.
- Run “theoretical vs actual” variance reports weekly using the Theoretical Food Cost Calculator.
- Spot-check high-value items (steaks, seafood, liquor) with surprise mini-inventories.
- Install low-cost cameras over prep areas and walk-ins — ROI is usually under 30 days.
Step 5: Fix menu pricing (the fastest 2–4% gain)
Most menus are priced on “what feels right” instead of math. Stop that.
- Run a full menu engineering matrix this month — stars, plowhorses, dogs.
- Raise prices on high-contribution items 50¢–$1.50 — guests barely notice when done right.
- Cut or re-engineer dogs that cost you’re losing money on.
- Use the Live Menu Engine if you want it done automatically and kept current forever.
Step 6: Negotiate vendors like your life depends on it
- Put protein on bid every 90 days — even if you love your guy.
- Use co-ops or group purchasing if you’re under $8k/week protein spend.
- Switch to frozen shrimp/scallops if fresh price is insane — guests can’t tell when cooked right.
- Lock in prices with contracts when you find a deal — beef is volatile in 2025.
Where the RPS tools plug in (and save you weeks of work)
- Food Cost Calculator Excel → weekly variance tracking
- Theoretical vs Actual Calculator → instant theft/waste alerts
- Menu Engineering Matrix → know exactly what to raise or cut
- Live Menu Engine → auto-updates prices when beef jumps $1.50/lb overnight
- Beginners start with the fillable templates. Ready to go pro? Hit The Vault.
Simple next step for this week
Print the waste log template, pin it in the kitchen, and tell the team every spoiled item goes on it with initials. Run your first full inventory this weekend. Do those two things and you’ll see movement by next Friday.
FAQs
What is food cost?
The percent of sales spent on ingredients.
Why does food cost increase?
Waste, portion creep, vendor price changes.
How do I control food cost?
Track recipes, portions, and update menu prices.