A healthy food cost determines whether your restaurant is profitable. Most restaurant owners don't realize what normal food cost percentages look like for their business type, causing them to unknowingly bleed money. Learn which food cost percentages signal financial health and how to determine yours.
I've watched countless restaurant owners discover they're hemorrhaging money through food costs they never properly calculated. Your food cost percentage determines if you're building wealth or slowly going broke. A single percentage point difference can cost you thousands monthly.
What is a healthy food cost percentage?
A healthy food cost for most restaurants falls between 28% and 35% of your selling price excluding VAT. This means roughly one-third of your menu price covers ingredients - no more.
💡 Example:
You sell a steak for €32.00 including 9% VAT.
- Selling price excl. VAT: €32.00 ÷ 1.09 = €29.36
- Ingredient costs: €9.50
- Food cost: (€9.50 ÷ €29.36) × 100 = 32.4%
This represents a healthy food cost for a restaurant.
Food cost by restaurant type
Different restaurant concepts operate within specific food cost ranges. Your service style, location costs, and positioning all affect these numbers.
- Fine dining: 28-35% (premium prices support expensive ingredients)
- Casual dining: 28-35% (standard range for most operators)
- Bistro/brasserie: 25-32% (simpler preparations often yield better margins)
- Pizzeria: 20-28% (pizza ingredients remain relatively inexpensive)
- Fast casual: 25-30% (efficient purchasing and controlled portions)
- Delivery/takeout: 28-35% (platform fees pressure overall margins)
⚠️ Note:
These percentages serve as benchmarks, not absolute rules. Your specific situation might require different targets.
Food cost warning signs
Your food cost becomes dangerous if you consistently exceed 35% on main courses. This leaves insufficient money for wages, rent, utilities, and profit. A pattern we see repeatedly in restaurant financials shows operators exceeding 38% can't maintain positive cash flow during slower periods.
💡 Example of problematic food cost:
Pasta carbonara for €18.50 including VAT:
- Selling price excl. VAT: €16.97
- Ingredient costs: €6.80
- Food cost: 40.1%
This percentage leaves too little for operational expenses.
Fixing high food costs
If your food cost consistently exceeds 35%, you have three main solutions:
- Raise selling prices: Adjust menu prices to reflect current ingredient costs
- Lower ingredient costs: Find cheaper suppliers or modify recipes
- Control portions: Serve slightly smaller portions (but communicate changes to guests)
💡 Price adjustment calculation:
Current situation: 40% food cost, target: 30%
- Ingredient costs: €8.00
- Current price: €20.00 excl. VAT
- Required minimum price: €8.00 ÷ 0.30 = €26.67 excl. VAT
- Menu price: €26.67 × 1.09 = €29.07 incl. VAT
You'll need to charge €9.07 more per dish.
Focus on your bestsellers
You don't need perfect margins on every single dish. Focus on your 5 top-selling items. If those maintain healthy food costs, you've solved 80% of your profitability issues.
Some dishes can carry higher food costs if they attract customers or boost wine sales. But your revenue drivers absolutely must remain financially sound.
Technology solutions
Food cost calculators display percentages for all your dishes instantly. You input recipes and purchase prices, then the system automatically calculates food cost percentages. This ensures you always know which dishes perform well financially and which need immediate attention.
How do you determine if your food cost is healthy? (step by step)
Calculate your current food cost
Add up all ingredient costs from your 5 best-selling dishes. Divide this by the selling price excluding VAT and multiply by 100 to get the percentage.
Compare with the benchmark for your type of business
Check if your food cost falls within the healthy range for your restaurant type. Casual dining: 28-35%, pizzeria: 20-28%, fine dining: 28-35%.
Analyze deviations and make a plan
Dishes above 35% food cost need action. Decide whether you raise prices, adjust ingredients, or reduce portions to get back into the healthy range.
✨ Pro tip
Calculate food costs on your 8 highest-revenue dishes every 5 weeks. If these core items stay between 28-35%, you've locked in roughly 75% of your profit potential.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
Was this article helpful?
Frequently asked questions
Should VAT be included in food cost calculations?
No, always use selling prices excluding VAT. Your menu shows prices with 9% VAT included, but food cost calculations require the pre-tax amount.
My food cost hits 38% but profits look good - is this problematic?
Not necessarily for your specific situation. These percentages serve as guidelines. If you're generating adequate profit and customers remain satisfied, you might be fine.
Can certain dishes justify higher food costs?
Absolutely - signature dishes that attract customers or items that pair with premium wines can run higher costs. Just ensure your volume sellers maintain healthy margins.
How frequently should I review food cost percentages?
Monitor your 5 bestselling dishes monthly at minimum. Supplier price increases happen regularly, so food costs can drift upward without obvious warning signs.
What's the fastest way to identify which menu items need price adjustments?
Calculate food costs for your top 10 revenue-generating dishes first. These items have the biggest impact on your bottom line, so they deserve immediate attention.
Should I remove high food cost dishes from my menu entirely?
Not always - some dishes serve strategic purposes beyond direct profit. But if a dish exceeds 40% food cost and doesn't drive other sales, consider reformulating or removing it.
📚 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.
Calculate it yourself with KitchenNmbrs
All the formulas you learn here — KitchenNmbrs calculates them automatically. Enter your ingredients and instantly see your food cost, margin, and selling price. Try it free for 14 days.
Start free trial →