Food Cost Control

Restaurant Food Cost Too High What To Do

Food cost over 35%? It's killing your bottom line. Fix it with quick audits, waste tracking, and smart pricing tweaks using 2025 benchmarks to hit 28-32% without skimping on portions.

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

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.

High food cost is usually 60% waste/process, 40% pricing. Fix the leaks before you raise menu prices.

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.

For starters, use our novice templates like the Waste Log. Pro? Hit the advanced calculators in The Vault.

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.

Open Food Cost Calculator Get Waste Log Template See Live Menu Engine

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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.