Updated October 13, 2026.
The two formulas
1. Food cost % for a period (actual)
Food cost % = (opening inventory + purchases − closing inventory) ÷ food sales x 100
Opening and closing inventory are the dollar value of stock on your shelves at the start and end of the period, from a stock count. Purchases are the food bills dated in the period. The top half of the formula is the cost of goods sold (COGS): what you actually used, whether it was sold, wasted, comped or went missing.
2. Food cost % for one dish (theoretical)
Plate cost % = cost of ingredients in one serve ÷ menu price (before tax) x 100
This is what the dish should cost if every portion is exact and nothing is wasted. The gap between the two numbers is where money goes missing.
Worked example: a month in a café
| Line | Amount |
|---|---|
| Opening stock (count on Sep 1) | $4,200 |
| + Food and drink bills dated in September | $11,800 |
| − Closing stock (count on Sep 30) | $4,500 |
| = Cost of goods sold | $11,500 |
| Food and drink sales (before tax, after discounts, without tips) | $38,000 |
| Food cost % | $11,500 ÷ $38,000 = 30.3% |
Without the stock counts you’d have used bills alone: $11,800 ÷ $38,000 = 31.1%. That’s close in a steady month but can be far off in a month when you stocked up or ran stock down. Count at the start and end of the period you’re measuring. See how to do a stock count.
Worked example: one dish
| Avocado toast | Quantity | Cost |
|---|---|---|
| Sourdough | 2 slices (120 g at $6.00/kg) | $0.72 |
| Avocado | 1 (case of 48 at $76.80) | $1.60 |
| Feta | 30 g at $16.00/kg | $0.48 |
| Pantry (oil, salt, chili, lemon) | $0.20 | |
| Cost per serve | $3.00 |
At a $12.00 menu price, plate cost is $3.00 ÷ $12.00 = 25%. If avocados go up to $96.00 a case ($2.00 each), the serve costs $3.40 and plate cost becomes 28.3%.
Setting a menu price from a target
Price = cost per serve ÷ target food cost
- $3.40 ÷ 0.30 = $11.33, so $11.50 if you round up to the next quarter.
- Or keep the margin in dollars: the old margin was $12.00 − $3.00 = $9.00; the new cost is $3.40, so $12.40 keeps the same $9.00 per plate.
The first keeps your percentage; the second is the smallest price change that keeps your profit per plate. Both are reasonable; choose per dish.
What’s a normal food cost percentage?
It depends on what you sell. Coffee and many drinks run lower than plated food; proteins and seafood run higher. Rather than chase an industry number, pick a target per category (coffee, bakery, lunch, alcohol) from your own menu, then watch the trend. A dish that drifts 2 to 3 points above its target is worth a look.
Mistakes that make the number wrong
- Using sales with tax or tips in them. Use net food and drink sales before tax, without tips.
- Mixing in non-food costs. Cleaning supplies and smallwares are operating costs. Packaging (cups, lids, boxes) is often tracked as cost of goods in cafés; be consistent.
- Old ingredient prices. A recipe costed last spring is wrong today. Cost recipes from the latest bills.
- Ignoring pack size. A case that went from 48 to 40 avocados at the same price is a 20% rise per avocado.
- No closing count. Bills alone tell you what you bought, not what you used.
- Forgetting the pantry. Oil, salt, sauces and garnish add up; put a small pantry amount on every recipe.
Actual vs theoretical: finding the gap
If your recipes say the menu should run at 28% but the month came in at 32%, the 4 points are waste, over-portioning, comps, staff meals, theft or recipes that don’t match what the kitchen does. Logging waste and counting the high-value items more often narrows down where it is.
How Tasti Desk helps
Tasti Desk prices your ingredients from the supplier bills you forward, so every recipe shows its cost per serve and food cost % against your target, with a suggested price (cost ÷ target, rounded up to the next $0.25). Price rise alerts show what a supplier increase does per serve, and Avo offers the keep-margin and keep-percentage prices for you to confirm. Stock counts give the period’s food cost % and what went missing between counts.
Related features: Recipes and food cost, Price rise alerts, Stock and ordering.