Actual food cost includes every ingredient that touches your dish — main components, cooking oil, spices, garnish, and trim loss. Calculate using selling price excluding VAT. Standard range is 28-35% for restaurants.
Most restaurants think they know their food costs, but they're wrong. You're probably calculating ingredient costs for your signature dishes while completely ignoring the €0.30 worth of oil, butter, and garnish that goes on every plate. These "invisible" costs can push your food cost from 28% to 33% without you even noticing.
What is actual food cost?
Actual food cost is the total amount you spend on all ingredients for one dish, expressed as a percentage of your selling price excluding VAT.
⚠️ Heads up:
Many business owners forget the small things: oil for cooking, butter on the plate, spices, garnish. Those "small" amounts can increase your food cost by 3-5 percentage points.
The complete formula
Actual food cost % = (Total ingredient costs / Selling price excl. VAT) × 100
Total ingredient costs include:
- Main ingredients (meat, fish, vegetables)
- Side dishes (potatoes, rice, pasta)
- Sauces and dressings
- Spices and seasonings
- Oil, butter, salt
- Garnish and decoration
- Bread and butter beforehand
Hidden costs you're missing
💡 Example: Steak with fries
What you probably count:
- Steak 200g: €6.40
- Potatoes 300g: €0.45
What you often forget:
- Frying oil: €0.30
- Butter for steak: €0.15
- Pepper and salt: €0.05
- Parsley garnish: €0.10
- Sauce: €0.35
Actual costs: €7.80 instead of €6.85
Trim loss and processing costs
Beyond forgotten ingredients, you've got trim loss. You buy more than what actually lands on the plate. It's the kind of thing you only learn after closing your first month at a loss — every gram of waste directly hits your bottom line.
💡 Example: Whole salmon
You buy whole salmon for €18.00 per kilo. After filleting you have 55% left (45% trim loss).
Actual fillet price: €18.00 ÷ 0.55 = €32.73 per kilo
For a 180 gram portion you pay €5.89, not €3.24 like you thought.
Processing VAT correctly
For food cost you always calculate with the selling price excluding VAT. The price on your menu includes 9% VAT.
⚠️ Heads up:
€32.00 on the menu = €29.36 excluding VAT (€32.00 ÷ 1.09). Always calculate your food cost with €29.36, not €32.00.
Practical checks
Regularly verify that your actual food cost remains accurate:
- Update supplier prices monthly
- Weigh portions to check they match your calculation
- Count all small ingredients, including oil
- Include trim loss in your purchase price
💡 Example: Complete calculation
Pasta carbonara, menu price €18.50 (incl. 9% VAT):
- Selling price excl. VAT: €16.97
- Pasta 120g: €0.45
- Bacon 80g: €1.60
- Cream 100ml: €0.35
- Egg 1 piece: €0.25
- Cheese 30g: €1.20
- Oil, spices: €0.25
Total ingredient costs: €4.10
Actual food cost: (€4.10 ÷ €16.97) × 100 = 24.2%
Standard percentages
An actual food cost between 28% and 35% is standard for restaurants. Under 25% is excellent, above 35% you're probably losing money.
How to calculate actual food cost? (step by step)
Gather all ingredients and current prices
Make a list of absolutely everything that goes on the plate: main ingredient, side dishes, sauces, spices, oil, garnish. Look up the current purchase prices from your supplier and include trim loss.
Calculate costs per portion
Weigh or measure exactly how much of each ingredient you use per portion. Multiply by the purchase price per kilo/liter. Add up all ingredient costs for the total cost price.
Divide by selling price excluding VAT
Calculate your selling price excluding VAT (menu price ÷ 1.09). Divide your total ingredient costs by this price and multiply by 100 for the percentage. This is your actual food cost.
✨ Pro tip
Weigh your actual portions for 48 hours straight, then compare to your recipe cards. Most restaurants discover they're serving 15-20% larger portions than calculated, which explains why their food costs don't match their spreadsheets.
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Frequently asked questions
Do I need to count the oil I cook with?
Yes, absolutely. Frying oil, butter for cooking, olive oil for the salad — everything that goes on or in the dish counts. This can make up 1-2% of your food cost.
How do I include trim loss in my food cost?
Divide your purchase price by the yield. With 40% trim loss you have 60% yield. €20/kg ÷ 0.60 = €33.33/kg actual price for the usable part.
What if my supplier raises prices?
Update your cost calculation immediately. Many restaurants do this too late and lose money for months. Check your supplier prices at least monthly.
Is 35% food cost too high for a restaurant?
For most restaurants, yes. Standard is 28-35%, but above 33% it becomes difficult to have enough profit left for all other costs and your own salary.
Should I calculate food cost differently for specials vs regular menu items?
No, use the same method for both. But track specials separately since they often have higher food costs due to premium ingredients. Aim for 2-3% lower food cost on specials to offset the risk of waste.
📚 Sources consulted
- EU Verordening 852/2004 — Levensmiddelenhygiëne (2004) — Official source
- EU Verordening 853/2004 — Hygiënevoorschriften voor levensmiddelen van dierlijke oorsprong (2004) — Official source
- EU Verordening 1169/2011 — Voedselinformatie aan consumenten (2011) — Official source
- NVWA — Hygiënecode voor de horeca (2024) — Official source
- NVWA — Allergenen in voedsel (2024) — Official source
- Codex Alimentarius — International Food Standards (2024) — Official source
- FSA — Safer food, better business (HACCP) (2024) — Official source
- BVL — Lebensmittelhygiene (HACCP) (2024) — Official source
- Warenwetbesluit Bereiding en behandeling van levensmiddelen (2024) — Official source
- WHO — Foodborne diseases estimates (2024) — Official source
Food Standards Agency (FSA) — https://www.food.gov.uk
The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.
Written by
Jeffrey Smit
Founder & CEO of KitchenNmbrs
Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.
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