In short
- Many restaurants work around 28% to 35% of net food sales, but your concept decides.
- Percentage tells you efficiency. Money margin tells you profit.
- Set one blended target, then judge each dish against it.
Ask ten chefs and you will hear "thirty percent" nine times. It is a useful starting point and a poor rule. A good food cost percentage is the one that still leaves enough to pay your labour, rent and a profit.
Typical ranges
These are common working ranges, not laws. Markets, menus and portion styles differ.
- Full-service restaurants: often around 28% to 35% of net food sales.
- Pizza and pasta concepts: frequently lower, because flour, tomato and cheese are cheap relative to the price.
- Steak and seafood: frequently higher, because the main ingredient is expensive.
- Cafés and bakeries: often low on drinks and baked goods, higher on sandwiches and salads.
Why the percentage can mislead
Two dishes on the same menu:
| Dish | Price | Ingredient cost | Food cost % | Money left |
|---|---|---|---|---|
| Burger | 12.00 | 3.60 | 30% | 8.40 |
| Ribeye | 34.00 | 13.60 | 40% | 20.40 |
The ribeye "fails" the 30% test and still leaves more than twice the money per plate. If your guests order it, you are better off. The percentage is a health check, not a goal in itself.
How to set your own target
- Start from your costs outside food: labour, rent, utilities, everything else.
- Decide the profit you want.
- What is left is the food budget as a share of sales. That is your blended target.
- Choose a target for each dish category around it. Soups and pasta below, steaks above.
What to do with dishes above target
You have four moves: raise the price, trim the portion, change an ingredient, or accept it because the dish sells the rest of the menu. Only the last one is a decision. The others are habits. Look at pricing methods before you touch a recipe.
Questions
Is 30% food cost good?
It is a common and reasonable target, but not universal. Whether it is good depends on whether the rest of your costs still leave a profit.
Does food cost % include labour?
No. It counts ingredients only. Labour is tracked separately and added together with food as prime cost.
