Food cost percentage — plate cost over menu price — is the core profitability check. Pricing from a target food cost sets the menu price that hits your margin.
The example
$3.20 cost, $10 price.
| A | B | |
|---|---|---|
| 1 | Item | Value |
| 2 | 3.20 / 10 | — |
| 3 | Food cost | → 32% |
The formula
The formula:
How it works
How it works:
- Plate cost = sum of ingredient costs (with yield/waste) for one serving.
- Divide by menu price for the food cost percentage.
- To price for a target:
plate_cost ÷ target_food_cost_pct. - Most food trucks target 28–35% food cost — lower leaves more for labor and overhead.
Food cost % is the dial; price is what you turn. If your target is 30% and a plate costs $3.30, the price has to be at least $11 (cost ÷ 0.30) — anything less starves labor and overhead. Build every menu item from a costed recipe, set the price from the target, and the whole menu stays profitable. Reprice when ingredient costs jump; food cost % drifts silently otherwise.
Try it: interactive demo
Plate cost and menu price (or target %).
Variations
Price for a target
From cost:
Gross profit per item
Price − cost:
Overall food cost
Across sales:
Pitfalls & errors
Yield/waste in cost. Use as-served cost, not raw purchase cost.
Cost ÷ price. Food cost % is on price, not markup on cost.
Zero price. Food cost % on $0 gives #DIV/0!.
Practice workbook
Frequently asked questions
How do I calculate food cost percentage in Excel?
How do I price for a target food cost?
What's a good food cost percentage?
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