Short answer
Many restaurants aim for roughly 28% to 35%. Food cost % = ingredient cost ÷ selling price × 100.
Try it with your own dish in the free food cost calculator — no sign-up, in English and French.
Worked example
- Selling price: $24.00
- Ingredient cost: $7.20
- Food cost percentage: $7.20 ÷ $24.00 × 100 = 30.0%
- Gross profit per serving: $24.00 − $7.20 = $16.80
- Gross margin: $16.80 ÷ $24.00 × 100 = 70.0%
That 70% is not the restaurant's profit. Labour, rent, utilities, packaging and other operating costs still have to be paid from it.
What to check when the percentage looks off
- Are portion sizes consistent, or does the same dish cost different amounts on different days?
- Are waste, spoilage and staff meals counted, or only the ingredients on the plate?
- Has an ingredient price changed since the menu price was set?
- Is the dish priced for the customers it actually serves, or only for the cost?
A percentage above 35% does not always mean the price is wrong — some dishes are meant to bring customers in, and other dishes on the same menu can carry a lower food cost. Look at the menu as a whole, not only at one dish.
What CluoPrints also does for restaurants
Besides free tools, CluoPrints builds business websites from C$699 one-time, then C$120/year all-inclusive, designs print-ready menus from C$149 (packages C$149–299), and offers a monthly social media content package from C$149/month — see services. To ask about a website, a menu or social media content, email info@cluoprints.com. See also: how to calculate a tip at a restaurant and Instagram hashtags for cafes and restaurants.