Start from what you paid, not a guessed unit price
Take the invoice: a 50 lb sack of flour at $27.40, a 1.8 kg chicken at $12.50. Divide pack price by pack size for a per-unit cost. This is the step spreadsheets fossilise — a per-gram price typed in once and never questioned again.
Cost each recipe line, applying yield
Multiply the per-unit cost by what the recipe uses — but if the ingredient loses weight to trim, peel or cooking, divide the quantity by the yield first. Needing 400 g of meat at 65% yield means paying for 615 g. Skipping this step always understates cost, which is why the error never gets caught by feel.
Sum the lines, divide by portions
The batch cost is the sum of every line. Divide by the number of portions the batch genuinely makes — counted from a real batch, not from the recipe card's optimism.
Divide by the menu price, multiply by 100
A $1.94 plate at $7.50 is 25.9%. That is the food cost percentage — one dish, honestly computed.
A complete worked example
Bread flour $27.40 / 50 lb -> $0.00121/g x 640 g = $0.77
Butter $34.00 / 5 lb -> $0.01499/g x 180 g = $2.70
Chicken $12.50 / 1.8kg -> $0.00694/g x (400 g / 0.65) = $4.27
batch $7.75
/ 4 portions $1.94
$1.94 / $7.50 menu price x 100 = 25.8%The same example runs live in the food cost calculator — change any number and everything recomputes.
When the answer looks wrong
A percentage over 100 means the plate costs more than it sells for — check portions first, it is usually portions. A suspiciously low number usually means a yield was skipped or a pack price is stale. And two dishes with identical percentages can be very different businesses: percentage hides dollars, so read it next to margin, which the percentage calculator shows side by side.
Common questions
- What is the fastest way to calculate food cost percentage?
- If you already trust your plate cost: divide it by the menu price and multiply by 100. If you do not trust the plate cost — and most spreadsheets deserve suspicion — build it first from pack prices, quantities and yields, then divide. The division is never the problem.
- Do I calculate it per dish or for the whole operation?
- Both, for different reasons. Per dish tells you which items are mispriced. The whole-period number (inventory movement against sales) tells you whether reality matches the recipes — the gap is waste and shrinkage.
- What counts as the cost of the dish?
- Everything edible that leaves with the plate, at what replacing it costs: mains, sides, garnish, the bread, the butter, the oil in the pan. Ingredients bought but lost to trim belong in there too, via yield. Labour and rent do not — they live in prime cost and overheads.