Tip: ingredient cost is raw food only — proteins, produce, oil, sauce, garnish. Don't add labour, gas or packaging here; that's prime cost, a separate number.
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At $180 with $54 of ingredients, you keep $126 of gross profit on every plate — right on your 30% target.
Estimates only. Food cost % covers ingredients, not labour, rent, gas or packaging — for those, look at prime cost (food + labour) and your full P&L.
How to read your number.
How to use it
- Take one dish and add up the cost of every ingredient that goes on the plate — protein, produce, oil, sauce, garnish.
- Enter that as ingredient cost, and the price you charge as menu price.
- Read the food cost %:
ingredient cost ÷ menu price. Gross profit is what's left after ingredients — before labour and overheads. - Compare to your target. Then repeat for your top sellers — that's where small changes move real money.
What's a good food cost %?
There's no single right answer — it depends on your format. Rough industry bands:
- 28–32% — the classic full-service target. Comfortable margins.
- Under 25% — common on drinks, coffee and sides; great margin, watch perceived value.
- 33–38% — steakhouses, seafood, premium proteins. Higher % on bigger tickets can still be very profitable.
- Over 40% — usually a signal: re-price, re-spec the recipe, or renegotiate the buy.
A high % on one signature dish isn't a crisis. A high blended food cost across the whole menu is.
Stop calculating dish by dish.
One plate is easy. A whole menu, across every outlet, as supplier prices move every week — that's the hard part. Here's where to go next.
Food cost guide
How to cost a recipe properly, price for your market, and spot the dishes quietly losing money.
Read the guide →Automate it with Papaya Stock live
Recipe-level costing that updates as supplier prices change — true food cost per dish, tracked automatically.
See Papaya Stock →See Papaya pricing
POS, ordering, payments and stock control in one system. Start free, add what you need as you grow.
View plans →Good to know.
The numbers behind the number — and where this calculator stops.