Food Cost Calculation: Control Your Dish Costs

Food Cost is the percentage of ingredient costs relative to the dish selling price. Optimal range: 25-35%. Higher means losing money. This guide covers how to calculate and control food cost.

Food Cost Formula

Food Cost (%) = (Ingredient Cost / Selling Price) × 100. Example: dish costs $5, ingredients cost $1.50. Food cost = 30%.

How to Reduce Food Cost

Ways to reduce: 1) Portion optimization, 2) Supplier negotiations, 3) Waste control, 4) Seasonal menu, 5) Using semi-finished products. With Delever Analytics you see food cost in real-time.

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