---
layout: default_v3
language: default
permalink: /glossary/food-cost.html
i18n_link: food-cost.html
updated: 2026-06-03
#--- article key-values ---#
collection: default_glossary
t_keyword: Food Cost
category: F
tags: 
type: glossary
page_id: 1561
hreflang_id: 1561

date_published: 2026-03-09
date_modified: 2026-06-03
#--- javascript schema ---#
javascript_schema:
- script: jquery_3_2_0_min
- script: bootstrap_min
- script: article_infinite_scroll
- script: article_mix_infinitescroll
- script: article_mix
- script: article_mix_faq
- script: article_mix_toc
#--- section schema ---#
section_schema:
- section: nav-main_menu
- section: glossary_body_v2
- section: footer
#--- page key-values ---#
meta_tags:
  t_meta_title: What Is Food Cost Percentage in Restaurants-
  t_meta_description: Learn what food cost means in restaurants and how to calculate food cost percentage to manage expenses, price menu items, and improve profitability-
  t_meta_abstract:
  i_meta_image: 
article_body:
  json-ld_article:
    v_date_published: 2026-03-09
    v_date_modified: 2026-06-03
  author:
    p_author_id: 203
    t_author: Priyanka Bhadani
    p_author_url: priyanka-bhadani.html
    i_author: 203.png
    t_author_description: Jin is a content coordinator and SEO strategist for the Hubworks marketing team. When she's not busy writing and conducting research, she enjoys reading, binging Netflix, and exploring the outdoors with her rescue dog.
    p_author_facebook: //www.facebook.com/HubWorksApp
    p_author_twitter: https://twitter.com/HubworksApp
    p_author_linkedin: 
    p_author_instagram: 
  content:
    heading:
      t_title: What is the meaning of Food Cost?
      t_description: The food cost percentage determines how much of the revenue of a restaurant will be used to purchase ingredients.
      image:
        i_image: credit-card-processing-101-how-it-works-best-options-1597884200-6489.png
        t_image_description: Credit Card Processing
        v_image_attribution: //pixabay.com/photos/money-card-business-credit-card-256319/
        v_image_license: Creative Commons Zero
      v_video:
      t_text: <p>The food cost percentage determines how much of the revenue of a restaurant will be used to purchase ingredients. Since food is one of the highest expenses, knowing what the food cost percentage is will help manage the budget of the business. Different restaurants calculate the price of each menu item in different ways. Some may base the price of a menu item solely on their food cost. Others will base the price on the <a href="https://plumpos.com/glossary/cost-of-goods-sold.html">cost of goods sold</a> (COGS), which includes materials used in the preparation of an individual menu item, such as toothpicks, napkins, sauces, etc.</p><h2>How to calculate ideal food cost percentage</h2>To determine your perfect food cost percentage, you must first identify two values-<ul><li>Total food costs</li><li>Total food sales</li></ul><p>For Example- If the total food cost is $2,500 and the total food sales are $8,000. To calculate your target food cost percentage, divide your total food expenses by your total food sales. Total food expense = 2,500 / 8,000 Total food cost = 0.31 or 31%</p>
---