Restaurant Food Cost Ratio Calculator
Enter your revenue and food cost to instantly calculate a restaurant's food cost ratio. It also shows your gross margin and gross profit, and works for the whole store or a single menu item (selling price and cost).
Input
Calculation unit
$
$
Result
Cost ratio
30.0%
Around 30% is typical (varies by restaurant type)
Gross margin
70.0 %
Gross profit
$2,100,000.00
Revenue
$3,000,000.00
How it works
- The cost ratio is calculated as "food cost ÷ revenue × 100". It shows what share of your sales is taken up by food costs.
- Gross margin is "100 − cost ratio" and gross profit is "revenue − food cost". Gross profit is the base earnings before paying for labor, rent, and other expenses.
- Use "Whole store (revenue)" to enter the revenue and food cost for a period, or "Per menu item (selling price)" to enter the selling price and cost of a single dish. The formula is the same for both.
- A cost ratio of around 30% is a common benchmark, but it varies by restaurant type: sushi and yakiniku tend to run higher, while cafe and izakaya drinks tend to run lower.
- The higher the cost ratio, the heavier the burden of food costs and the harder it is to turn a profit. Consider improving it by reviewing prices, portion sizes, and reducing waste.
- Note: the food cost here is a purchase-based estimate and does not include labor, rent, utilities, or other expenses. For actual profit management, cross-check against your store's accounting figures.
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Restaurant Food Cost Ratio Calculator