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Food cost

Food cost is the value of ingredients used divided by sales, as a percentage. Example: 3,000 of ingredients on 10,000 of sales = 30%.

Last updated: 2026-09-02

Food cost is the value of ingredients used divided by sales, as a percentage. Example: 3,000 of ingredients on 10,000 of sales = 30%.

Most restaurants target 28–35%. A high number means waste, low pricing, or high purchase prices. Work it out with the free dish-cost calculator.

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Common questions

How is it different from prime cost?

Food cost is ingredients only; prime cost = food cost + labour cost.