The short version
If your food cost is north of 30%, it's likely waste (20–30% of losses), portion creep, or vendor price jumps. Drop it fast by tracking recipes and yields—aim for 25–32% in 2025.
The real math: food cost breakdown
Don't blame "inflation." Break it down with current 2025 numbers:
- Beginning inventory + purchases - ending inventory = COGS.
- COGS ÷ total sales = food cost %.
- Target: 25–32% for most concepts (under 28% for QSR, up to 35% fine dining).
- Waste factor: Track spoilage logs—average 5–10% loss on produce/meat.
Example: $50k sales, $18k COGS = 36%. That's $3k/month bleeding out. Cut waste by 2%, save $1k.
Ideal: (Beginning inv. $10k + purchases $20k - ending $12k) ÷ $50k sales = 36% → too high. Target fix: Reduce purchases via better ordering.
Factors that spike your food cost in 2025
Common culprits operators miss:
1. Waste and spoilage
- Over-prep: 10–20% daily loss on salads/produce.
- Expired stock: No FIFO? Add 5% creep.
- Theft/shrink: 1–3% from staff "samples."
2. Portion control slips
- Eyeballing: +10–15% over standard (e.g., 6 oz protein instead of 4 oz).
- Recipe drift: No cost cards? Costs jump 5–8%.
3. Vendor and purchasing
- Price hikes: Beef up 8–12% YoY wholesale.
- Over-ordering: No PAR levels? 5–10% excess inv.
- Wrong specs: Cheap substitutes spike waste.
4. Menu and operations
- Low-margin items: Stars vs. dogs in menu mix.
- Delivery packaging: +2–4% on third-party orders.
- Inefficient prep: High trim loss on proteins.
Quick food cost audit
Spot your leaks in under 10 minutes:
Step 1: Run the numbers
- Pull last month's inv. reports and sales.
- Calculate actual vs. theoretical (use our COGS Calculator).
- Variance over 2%? Dig into waste logs.
Step 2: Check controls
- Portions: Weigh 5 random plates—match recipes?
- Vendors: Compare invoices YoY for hikes.
Step 3: Fix and track
- Set PARs, train on portions, update prices.
- Re-run math weekly—aim for 1–2% drop/month.
How to lower food cost without losing quality
Cut costs smart, not corners:
- Standardize recipes. Cost every plate—use our Recipe Cost Card to lock portions.
- Track waste daily. Log spoilage—cut over-prep by 50% in a week.
- Menu engineer. Push high-margin items, axe dogs—see our matrix.
- Negotiate vendors. Shop bids quarterly—save 5–10% on staples.
Grab the Food Inventory Sheet from our templates.html for a simple start on tracking.
Where the RPS tools plug in
One-off fixes fade. Build a system that keeps costs honest:
- Recipe Cost Card: Break down every dish for accurate portions and costs.
- Yield Test Calculator: Measure real loss on proteins/prep to adjust ordering.
- Menu Engineering Matrix: Spot low-margin items dragging your average.
- Live Menu Engine service: Auto-updates prices as ingredient costs change—no more manual math.
If you’re comparing DIY spreadsheets and live menu pricing to the big all-in-one restaurant 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 math. If over 32%, log waste for 3 days and cut one big leak (e.g., over-portioning proteins).
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.