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Food cost (share of ingredients in the price)

Enter the recipe and instantly see the cost of one portion, the food cost percentage and the right menu price.

FormulaFood cost % = (Ingredient cost ÷ Selling price) × 100

Cleaning loss is included: quantity ÷ (1 − loss %) × unit price.

What does this tool do? Works out what one portion costs you and shows whether its menu price is right.

How it works

  1. Enter the recipe: e.g. for chicken with rice — 250 g chicken fillet (9.50 ₼/kg), 30 ml olive oil and 150 g basmati rice (example prices).
  2. Add each ingredient’s cleaning loss (bones, peel, fat — the part thrown away) in %: the tool works out the real portion cost — 3.54 ₼ in the example.
  3. Enter the menu price (18 ₼ in the example): food cost is 19.6%. If it is above your target, the tool shows what price to move to.

Recipe card

Ingredient
Qty
Unit
Price per unit (₼)
Cleaning loss %
2.50 ₼
Ingredient
Qty
Unit
Price per unit (₼)
Cleaning loss %
0.36 ₼
Ingredient
Qty
Unit
Price per unit (₼)
Cleaning loss %
0.67 ₼
Ingredients, total3.53 ₼
28–32%Restaurant / café
22–28%Fast food
35–40%Upscale restaurant

Food cost in plain words

Know the logic before you calculate.

What is food cost?

It is the cost of the ingredients used in the dishes you sold. Wages, rent and utilities are not included — only what ends up on the plate.

How to count the ingredients used in a month

Stock at the start of the month

+ Bought during the month

− Returned to suppliers

= Available to use

− Stock at the end of the month

= Ingredients used this month

Food cost % = ingredients used ÷ sales × 100

Which price should you count stock at?

You bought the same item at different prices — which one counts?

“First in, first out” — recommended

What was bought first is used first and counted at its own purchase price. The most accurate method for a restaurant.

Average price

Total value of all purchases ÷ total quantity = average price. Simple, but slow to show reality when prices move fast.

Last purchase price — misleading

If prices went up, counting old stock at the new price makes food cost look higher than it is.

What is cleaning loss?

From 1 kg of chicken, after cleaning (bones, skin and fat are thrown away) about 850 g is left — a 15% loss (example). You paid for the part you throw away too, so the portion cost goes up.

Example loss rates (rough — check with your own scale)

Chicken breast: 5–8%Whole chicken: 35–40%Beef: 15–25%Fish fillet: 40–55%Vegetables: 10–20%Onion/garlic: 10–15%

What drives food cost: 4 factors

These factors differ in every restaurant, so food cost differs too.

Purchase price

What you pay for ingredients. This is in your hands: check the market, ask several suppliers for prices, find the same quality for less. Use what was bought first, first. Compare prices every week.

Selling price

Never set a price without a recipe and a cost calculation. First work out food cost, then set the price from your target percentage. Pricing “like the place next door” is the biggest mistake. The right way: portion cost ÷ target food cost % = selling price.

Which dishes sell most

The same menu can give a different food cost in two months — it depends on what sells more. Push the dishes that earn most; fix the price of low earners or take them off the menu. The “Menu matrix” tool helps with this.

Control in the kitchen

Following recipes, staff meals, spoiled stock, free treats, cash shortages — all must be controlled. Use what was bought first, first. Meat is the most expensive loss — start there. Count stock weekly and compare with what you expected.

DK Agency tip

Running a kitchen without knowing food cost is the most expensive mistake. Count your stock every month and use what was bought first, first.

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