What is a good food cost percentage?

Most restaurants aim for 28-35%. Fast food runs lower (25-30%), fine dining runs higher (30-40%). The ideal depends on your concept, labor costs, and overhead.

How do you calculate food cost percentage?

Divide your total food costs by your total food revenue, then multiply by 100. For example: $3,500 in food costs ÷ $10,000 in food sales × 100 = 35%.

How to lower food cost percentage?

Common strategies include reducing portion sizes, negotiating supplier pricing, minimizing waste, engineering your menu to feature higher-margin items, and improving inventory management to reduce spoilage.