Numbers that matter
What is food cost percentage? Formula and example
An example
A paneer butter masala sells for ₹240 and its ingredients cost ₹72. Food cost = 72 ÷ 240 × 100 = 30%.
For the whole restaurant
For a month: (opening stock + purchases − closing stock) ÷ food sales × 100. Many restaurants aim for roughly 28% to 35%, but it depends on your cuisine and prices.
How to bring it down
Use recipes so every cook uses the same quantity, buy in sensible amounts, reduce waste, and review the price of dishes whose cost has gone up.
How AppZet Billing handles it
- Recipes link each dish to the ingredients and quantities it uses.
- The Ingredient Consumption report works out the ingredients used, and their cost, for the dishes you sold.
Frequently asked questions
Does food cost include staff and rent?
No. Food cost is ingredients only. Staff, rent and power are separate costs.