The ratio of food costs to food sales, expressed as a percentage. Most independent operators target 28-35% for profitability.
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Food Cost Percentage
The ratio of food costs to food sales, expressed as a percentage. Most independent operators target 28-35% for profitability.
Related terms
- Actual Food Cost — Real food costs calculated from beginning inventory, purchases, and ending inventory over a period. Should be reconciled weekly against ideal cost.
- Ideal Food Cost — The theoretical food cost percentage assuming zero waste, theft, or errors. Calculated using exact recipe portions and purchase prices.
- Food Cost Variance — The difference between actual and ideal food costs. Positive variance signals waste, theft, or portion inconsistencies that need addressing.