🍽️ Restaurant Food Cost Calculator
Maintain healthy menu margins by calculating ingredients ratios per serving, gross margins, and suggested pricing.
What is a standard Food Cost Percentage target for a profitable restaurant?
For most full-service restaurants, a healthy food cost percentage falls between 28% and 35%. Keeping ingredients within this bracket leaves enough margin to cover kitchen labor, front-of-house payroll, rent, utilities, and general overhead allocations.
What is Prime Cost in the restaurant industry?
Prime Cost is the sum of Cost of Goods Sold (ingredients + packaging) and total labor expenses. It is the most critical controllable operational metric in food service, and operators generally aim to keep prime cost below 60% of total revenue to ensure viability.
How do you calculate suggested selling price based on target food cost?
To calculate the suggested selling price, use the formula: Suggested Price = Ingredient Cost / (Target Food Cost % / 100). For example, if ingredients cost ₹120 and target food cost is 30%, selling price is 120 / 0.3 = ₹400.