The formula
Food cost percentage = (beginning inventory + purchases - ending inventory) / food sales x 100. If you started the week with $4,000 of food, bought $6,000, ended with $3,500, and sold $22,000 of food, your food cost is $6,500, or 29.5% of sales.
Typical targets
Full-service restaurants often run 28% to 35%. Many catering guides target 25% to 30% because caterers buy for a known headcount and waste less. Your target depends on your menu, prices and labor model, so compare against your own past weeks, not only an average.
Plate cost: food cost per menu item
For pricing, work item by item. Cost out each recipe from current ingredient prices, then divide by the menu price. An item with a $4.20 plate cost on a $14 menu price runs 30%. Items far above your target are the first to re-price or re-portion.
Why the number drifts
Ingredient prices move every week, portions creep, and waste goes uncounted. A menu priced when chicken was cheaper can quietly lose margin. Recheck plate costs whenever a major ingredient moves.
Keeping it current with Cenvi
Cenvi's Inventory add-on keeps live stock and counts by storage area, reads supplier invoices, and builds recipes with a plate cost for each menu item. Ingredient prices are tracked at stores near you, so plate costs update as the market moves. The free ingredient price tracker shows local prices without an account.
Frequently Asked Questions
What is a good food cost percentage?
Many restaurants aim for 28% to 35% and many caterers for 25% to 30%. The right target depends on your menu and pricing.
How often should I calculate food cost?
Weekly, using an inventory count, and per item whenever an ingredient price changes.
Is food cost the same as plate cost?
Food cost percentage covers all food sales over a period. Plate cost is the ingredient cost of one menu item.
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