The short version
If food cost hits 35%+, audit inventory variance first, then tighten portions and renegotiate vendors. Aim for 28-32% in 2025—use waste logs and recipe cards to drop 3-5 points in weeks.
Why your food cost is too high (real 2025 causes)
Skip the guesses—common culprits based on operator audits:
- Waste/spoilage: 5-10% loss from over-prep or poor storage.
- Portion creep: Staff over-serving adds 2-4% monthly.
- Vendor hikes: Ingredient prices up 8-12% YoY without menu updates.
- Theft/variance: 1-3% from untracked "comps" or employee meals.
- Menu mix: Low-margin items dominating sales.
Benchmark: QSR 25-30%, full-service 28-35%. Over that? You're bleeding prime cost.
Quick audit: find your food cost leaks
Do this weekly until you're under control:
Step 1: Run variance math
- Theoretical usage (from POS sales) minus actual inventory = variance.
- Over 2%? Dig into high-cost items like proteins.
- Use our Food Cost Calculator from The Vault for fast numbers.
Step 2: Track waste daily
- Log spoilage, over-prep, and plate waste.
- Target: Under 1% of purchases—use our Waste Log Template.
Step 3: Check portions
- Weigh/measure 10 random plates against recipes.
- Fix with standardized scoops and training.
Example: $50k sales, 35% food cost = $17.5k spend. Drop to 30% = $2.5k/month saved.
How to lower food cost without cutting quality
Smart fixes that stick:
- Recipe lockdown. Cost every dish with yield tests—update quarterly.
- Vendor shop. Bid 3 suppliers, lock prices for 6 months.
- Menu tweaks. Engineer out low-margin dogs, push stars.
- Inventory PARs. Order just-in-time to cut spoilage 20-30%.
- Staff buy-in. Share variance reports—tie bonuses to cost targets.
Grab the Food Inventory Sheet from our templates for a simple start.
Where the RPS tools plug in
One-off fixes fade—build systems that hold:
- Food Cost Calculator: Weekly % tracking with variance alerts.
- Inventory PAR Builder: Set smart order levels based on usage.
- Menu Engineering Matrix: Spot and fix margin killers.
- Live Menu Engine service: Auto-updates prices as ingredient costs rise—keeps food cost honest.
If you’re comparing manual tracking to automated systems vs. big restaurant platforms, our Us vs Them page shows why Restaurant Profit Systems wins for independents.
Simple next step for this week
Run a quick variance check: Compare last week's purchases + starting inventory - ending = actual cost. Divide by sales. Over 32%? Start waste logging today.
FAQs
What food cost percentage is "too high" for a restaurant?
Anything over 35% is a red flag for most concepts. Full-service should target 28-32%, QSR 25-30%. If you're consistently above your target by 3+ points, you're losing thousands monthly. A 5-point overage on $50K in sales is $2,500/month walking out the door.
What's the first thing to check when food cost spikes?
Inventory variance. Compare what your POS says you should have used (theoretical) vs. what inventory shows you actually used (actual). If the gap is over 2-3%, you've got waste, theft, or portioning problems. Start with your top 5 cost items—proteins first.
How fast can I bring high food cost back down?
You can drop 2-4 points in 2-3 weeks with focused effort: tighten portions immediately, run a waste log for one week to find patterns, and update any menu prices that haven't changed in 6+ months. Bigger fixes like vendor renegotiation take 30-60 days.
Should I raise prices or cut costs first?
Cut the waste first—it's free money. Most kitchens have 3-5% hiding in overportioning, spoilage, and untracked comps. Fix those before touching prices. Then, if you're still over target, raise prices strategically on high-sellers where guests won't notice as much.