Food Cost Formula

Food cost tells you what the ingredients in a dish cost, and as a percentage of price, whether it is profitable to sell.

Cost per serving = Total ingredient cost ÷ Number of servings

Where

Total ingredient cost Sum of all ingredient costs
Number of servings Portions the recipe yields

Worked example

A dish costing $12 in ingredients that serves 6 is $12 ÷ 6 = $2.00 per serving.

Food cost percentage = ingredient cost ÷ menu price × 100. Restaurants typically target 25 to 35%.

Calculate with the Cost Per Serving calculator in the cooking calculators.

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