Food Cost Control

What Is A Good Food Cost Percentage For A Restaurant?

In 2025, rising ingredient prices make tight food cost control essential. Learn benchmarks for your concept and simple ways to hit targets without sacrificing quality.

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

The short version

Aim for 25–35% food cost as a percentage of sales. QSR and fast casual can push lower (25–30%), while full-service spots often land at 30–35% to account for premium ingredients.

Food cost isn't just a number—it's your buffer against inflation. Get it under 30%, and you're building real margin in a tough 2025 market.

The real math: food cost percentage breakdown

Food cost % = (Cost of ingredients used / Total food sales) × 100. Track it weekly, not just monthly, to catch spikes early.

  • Beginning inventory: $5,000.
  • Purchases: $3,000.
  • Ending inventory: $4,500.
  • Sales: $12,000.

Cost of goods sold (COGS): $5,000 + $3,000 - $4,500 = $3,500. Food cost %: ($3,500 / $12,000) × 100 = 29.17%.

Target tweak: If over 30%, cut waste by 5% or raise prices 3–5% on high-cost items.

Factors that affect your food cost percentage in 2025

Inflation hits hard, but these variables let you dial in your target:

1. Concept type

  • QSR/pizza: 25–30% (high volume, simple ingredients).
  • Full service: 30–35% (premium proteins, diverse menu).
  • Fine dining: 35–40% (exotic ingredients, presentation focus).

2. Location and seasonality

  • Urban/high-rent: 28–32% (higher vendor prices).
  • Rural/suburban: 25–30% (lower supply costs).
  • Seasonal spikes: +2–5% for produce/meat in off-seasons.

3. Menu mix and waste

  • High-margin stars: Pull average down to 28%.
  • Waste/theft: Adds 3–7% if unchecked.
  • Portion control: Saves 2–4% with consistent recipes.

4. Vendor and overhead

  • Bulk buying: Drops cost 5–10%.
  • Delivery fees: +1–2% for third-party apps.
  • Inflation buffer: Plan for 4–6% annual rise in staples.

Quick food cost audit

Benchmark your operation in under 10 minutes:

Step 1: Calculate actual %

  • Pull last week's inventory and sales data.
  • Use our Food Cost Calculator Excel from templates.html for the formula.
  • Compare to industry averages for your concept.

Step 2: Set realistic targets

  • Under 25%: Too low—check for quality skimping.
  • Over 35%: Red flag—audit waste and portions.

Step 3: Adjust and monitor

  • Trim high-cost items or renegotiate vendors.
  • Run weekly with our Restaurant COGS Calculator Excel.

How to hit good food cost without cutting quality

Lower % doesn't mean cheap food—smart operators balance with value:

  • Menu engineering. Push high-margin items to offset premium ones—aim for 28% overall.
  • Portion tracking. Use recipe cards to standardize—saves 2–4% on creep.
  • Vendor swaps. Shop bids quarterly—drop 3–5% without changing suppliers.
  • Waste logs. Track daily—cut spoilage by 5% with better ordering.

Grab the Food Inventory Sheet Excel from templates.html to start tracking.

Where the RPS tools plug in

One-off calculations are fine. Building a system that holds steady? That's RPS:

  • Food Cost Calculator Excel: Weekly % breakdowns tied to inventory.
  • Restaurant Waste Log Template: Spot patterns that inflate your %.
  • Menu Engineering Matrix: Optimize mix to hit 28–32% targets.
  • Live Menu Engine service: Auto-adjusts prices as ingredient costs rise, keeping % honest.

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

For beginners, start with our templates like the Simple Restaurant Inventory Spreadsheet. Ready for pro-level? Check the calculators in The Vault.

Simple next step for this week

Run last week's food cost %. If over 32%, audit one high-cost category (like proteins) and trim 2% with portion tweaks.

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

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FAQs

What's a good food cost percentage for most restaurants?

25-35% is the typical range. QSR and pizza shops can hit 25-28% with simple menus and high volume. Full-service restaurants usually land at 28-32%. Fine dining runs 33-38% because of premium ingredients. The "right" number depends on your concept—what matters is consistency.

Is lower food cost always better?

No. Under 25% often signals quality problems—cheap ingredients, tiny portions, or skimping that guests notice. The goal is the lowest sustainable number that doesn't hurt food quality or guest experience. A profitable 30% beats an unsustainable 24%.

How do I know if my food cost percentage is too high?

Compare to your concept's benchmark, not industry averages. If you're 3+ points above target consistently, something's off. Also check prime cost (food + labor)—if that's over 65%, you've got margin problems even if food cost looks okay in isolation.

Does food cost percentage include beverages?

Usually no—food and beverage costs are tracked separately. Beverage cost runs much lower (18-24% for alcohol, 20-25% for non-alcoholic). Combining them masks problems. Track food cost on food sales only for accurate benchmarking.