Food cost
Shows how much of one item's selling price is consumed by its food or recipe cost.
Restaurant Calculators & Profit Tools
Use restaurant operating numbers to understand where sales are going, whether menu items support the business, and how much revenue is needed to cover the full cost of service.
- Food cost
- Menu pricing
- Prime cost
- Break-even
- Menu engineering
Direct answer
What is food cost percentage?
Item food cost percentage is the share of a menu item's selling price consumed by its food or recipe cost. Divide the item's food cost by its selling price and multiply by 100; labor, occupancy, and other operating expenses are not included.
Connect the operating numbers
Item economics are one part of the restaurant cost system.
Recipe and menu-item results become more useful when read alongside labor, fixed operating costs, sales mix, and restaurant-level profit. One percentage cannot diagnose the business by itself.
Contribution margin
Shows the selling price left after an item's variable cost to help cover labor and overhead.
Break-even sales
Estimates the sales volume required to cover fixed costs at the current contribution margin.
Clear definition
What is restaurant prime cost?
Prime cost is cost of goods sold plus labor cost. It combines two of the largest controllable restaurant cost groups, but it still excludes rent, utilities, insurance, and other overhead.
Prime costCOGS + labor
Use matching reporting periods and consistent cost definitions.
Choose the right view
Match the calculation to the decision.
| Question | Useful inputs | Decision supported |
|---|---|---|
| Does this item match its selected target? | Recipe cost and selling price | Review portion, recipe, contribution, or price |
| Does this menu item carry enough margin? | Item cost, selling price, units sold | Price, portion, placement, or recipe review |
| How much must the restaurant sell? | Fixed costs and contribution margin | Break-even sales and volume targets |
Menu decisions
What is menu engineering?
Menu engineering compares an item's popularity with its contribution margin. It helps operators distinguish high-volume items from high-contribution items before changing price, placement, or promotion.
Available calculators
Use the tools available now.
Move from repeatable recipe cost to item food cost, target-based menu pricing, and a restaurant-level monthly operating estimate.
Ready to useFood Cost CalculatorCalculate item food cost percentage, gross contribution, and target selling prices from recipe cost and menu price.Open calculator Ready to useRecipe Cost CalculatorCalculate ingredient usage, total recipe cost, and cost per serving with compatible kitchen unit conversions.Open calculator Ready to useMenu Price CalculatorCalculate a target-based menu price, contribution, and current-price comparison from item food cost.Open calculator Ready to useRestaurant Profit CalculatorEstimate monthly restaurant operating profit, margin, and major cost percentages from revenue and expenses.Open calculator
The target stays yours.
Food Profit Lab shows formulas and assumptions, but it does not prescribe a universal benchmark. Use targets that reflect your prices, product mix, service model, and full cost structure.