Target food cost varies by concept: full-service restaurants typically run 28-35%, fast casual 25-32%, and fine dining can go higher due to premium ingredients. Beverage programs (especially alcohol) have much lower food cost — typically 18-24%. The key is knowing your number and managing to it consistently, not just hitting an industry average.

List every ingredient in the dish with its unit cost and the quantity used per serving. Sum those ingredient costs to get your recipe cost per plate. Divide by your menu price to get food cost percentage. The calculator does this automatically as you add ingredients — most operators are surprised how different their theoretical and actual food cost are.

Theoretical food cost is what your food cost should be based on your recipes and menu mix. Actual food cost includes waste, over-portioning, spoilage, theft, and comp meals. The gap between theoretical and actual — called variance — is where most food cost problems hide. A gap above 3-4% typically points to a portioning or waste issue.

Work backwards from your target food cost percentage. If your target is 30%, divide your ingredient cost by 0.30 to get the minimum menu price. Then factor in your competitive set and perceived value. The tool overlays your target margin on each item so you can see which items are priced correctly and which are dragging profitability.