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.
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.
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.
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.