Food cost percentage is only half the story - a low percentage on a cheap plate can make less actual money than a higher percentage on a high-ticket one. Watch both the percentage and the gross profit dollars per plate, and weight your menu toward the items that earn on both.
Repricing one dish is easy; keeping plate costs honest across a whole menu and multiple sites is the hard part. A free MOS audit shows where margin is quietly leaking.
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Frequently asked questions
How do I calculate food cost percentage on a menu item?
Food cost percentage = plate cost / menu price x 100. The plate cost is the total ingredient cost of one serving, including garnish and a realistic allowance for trim and waste. Most kitchens target 28-35% per plate.
Should I price by food cost percentage or gross profit?
Both. Food cost percentage keeps a dish efficient, but gross profit dollars are what actually pay the bills. A side at 20% food cost might make $3 a plate while an entree at 34% makes $14 - so weight your menu toward items that win on both.
How do I use this to reprice my menu?
Enter a dish's plate cost and current price to see its food cost percentage. If it's above target, the calculator shows the price that hits your target food cost - and, with monthly volume, how much extra profit the change would add.
Sources
- National Restaurant Association: Restaurant operators kept food-cost ratios in check in 2024 (2025). Full-service food and non-alcohol beverage costs ran a median of 32.0% of sales in 2024.
- Lightspeed: The Complete Guide to Restaurant Profit Margins (2025). Healthy food cost runs 28-35%; full-service net margins typically 2-6%; catering ~7-8%.