What is food cost percentage?

Cost of goods sold is the amount of money you’ve spent on ingredients and inventory in a given time period. It’s nice to know if individual items are profitable or not, you also need to know if your entire business is on track for success.

On average, food cost percentage is 28-32% in many full-service and quick-service restaurants. How can you find this number for your restaurant? Start with your weekly inventory.

How is food cost percentage calculated?

Simply put, your food cost percentage is COGS (cost of goods sold) divided by sales. It’s that easy, but we also made a calculator for you to use, as well.

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