The basic formula
Food cost (%) = ingredient cost per plate ÷ selling price × 100
Selling price = ingredient cost per plate ÷ target food cost
Example
Ingredients for one plate cost IDR 18,000 and the target food cost is 30%. Suggested selling price = 18,000 ÷ 0.30 = IDR 60,000, before tax and service.
Working out cost per plate
- Write a standard recipe for one batch, with exact quantities
- Multiply each ingredient by its purchase price
- Allow for waste (skin, bones, trimmings)
- Divide the total cost by the number of portions
What is a sensible target?
It depends on the concept. Many restaurants target around 28–35% for food, with drinks usually lower. More important than the target itself is consistency: recipes followed, stock recorded, prices reviewed when ingredient costs rise.
Don't forget
- Food cost covers ingredients only — wages, rent and overheads must come out of gross profit
- Re-check whenever key ingredient prices change
- Compare theoretical food cost (recipes) with actual (stock) every month
Try it now with our food cost calculator.