Food Cost Control

How Do I Fix My Food Cost?

Food costs are spiking in 2025, but you can plug the leaks with inventory tweaks, portion rules, and smart pricing. Hit 28-35% without cutting quality or sales.

RPS Guide • Built for operators who actually run the shift
Reading time: about 6 minutes
Food Cost Control

The short version

Aim for 28-35% food cost in 2025. Fix high costs by tracking inventory weekly, enforcing portions, cutting waste, and updating prices quarterly. Start with a quick audit to spot the biggest leaks.

Food cost control is 80% process, 20% math. Get it wrong, and even busy shifts bleed profit.

The real math: food cost breakdown

Your food cost % = (Beginning inventory + Purchases - Ending inventory) / Sales * 100. Track it weekly to catch issues early.

  • Inventory: Weekly counts prevent overbuying and theft.
  • Purchases: Negotiate with vendors for better deals.
  • Waste: Log spoilage and overportions—aim under 5%.
  • Sales: Mix affects %; push high-margin items.

Example: $10k sales, $3k COGS = 30%. If waste adds $500, it jumps to 35%—that's $500 lost profit.

Target: 28-32% for full-service, 25-30% for QSR. Adjust for your concept.

Factors that drive up food costs in 2025

Inflation hits hard, but internal leaks hurt more:

1. Waste and spoilage

  • Overprepping: 10-20% of food thrown out daily.
  • Poor storage: FIFO ignored, leading to rot.
  • Employee meals/comp: Untracked "freebies" add up.

2. Portion creep

  • Extra scoops: Cooks eyeballing instead of measuring.
  • Upsize culture: "Make it look good" inflates costs.

3. Vendor and supply issues

  • Price hikes: Up 5-15% on staples like beef/produce.
  • Overordering: No par levels = excess inventory.
  • Theft: Internal or delivery shorts.

4. Menu and operations

  • Low-margin items: Stars that sell but kill %.
  • Inefficient recipes: High-cost ingredients unused.
  • Delivery/packaging: Adds 10-20% to third-party orders.

Quick food cost audit

Spot fixes in under an hour:

Step 1: Calculate current %

  • Pull last week's inventory, purchases, sales.
  • Use our Food Cost Calculator for accuracy.

Step 2: Check variance

  • Compare theoretical (recipes) vs. actual usage.
  • Over 2-3%? Look for waste or theft.

Step 3: Review processes

  • Portions measured? Inventory weekly?
  • Vendors competitive? Menu priced right?

How to fix food costs without losing customers

Cuts don't mean skimping—focus on efficiency:

  • Standardize recipes. Cost cards for every dish—lock in portions.
  • Train staff. Waste logs and portion tools build habits.
  • Menu engineer. Axe low-margin dogs, promote stars.
  • Price smart. Small hikes (5-10%) with value adds like bundles.
  • Tech up. Inventory apps catch issues real-time.

Start with our templates like the Waste Log to track and trim without menu changes.

Where the RPS tools plug in

Fixing one week is easy. Keeping costs low year-round? Our tools automate it:

  • Food Cost Calculator: Run weekly % with inventory inputs.
  • Inventory Spreadsheet: Track stock, set pars, flag variances.
  • Menu Engineering Matrix: Spot high-cost items dragging your %.
  • Live Menu Engine service: Auto-updates prices as ingredient costs rise.

If you’re comparing DIY spreadsheets and live tracking to the big all-in-one restaurant platforms, our Us vs Them page breaks down why Restaurant Profit Systems is different.

For beginners, grab fillable templates like the Inventory Sheet. Pro level? Use calculators in The Vault for variance analysis.

Simple next step for this week

Do a quick inventory count. Calculate your %—if over 35%, log waste for 3 days and portion-check top sellers. Tweak one menu item.

Open Food Cost Calculator Get Inventory Template See Menu Engine

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FAQs

How quickly can I fix high food cost?

You can see results in 1-2 weeks if you focus on the big levers: tighten portions on your top 5 sellers, run a waste log for 3 days to find spoilage patterns, and do a single inventory count to establish your baseline. Quick wins first, systems later.

What's the fastest way to find where food cost is leaking?

Compare your theoretical food cost (what recipes say you should spend) to your actual food cost (what inventory math shows you spent). If the gap is over 2-3%, you've got waste, theft, or portion creep hiding somewhere. Start with proteins—that's where the dollars are.

Should I raise prices or cut portions to fix food cost?

Neither as a first move. Fix the process leaks first—waste, overportioning, and bad purchasing habits. Once those are tight, a small price bump (5-8%) is easier to justify than shrinking plates. Guests notice portion cuts faster than price changes.

How often should I check my food cost percentage?

Weekly. Monthly is too slow—you'll catch problems 4 weeks late and lose thousands before you react. Pick the same day each week, count inventory, and run your numbers. It takes 20 minutes once you have a system.