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Food Cost Calculator - Free Restaurant Profit Margin Calculator

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Food Cost Calculator

Calculate accurate food costs, determine profit margins, and set optimal menu prices for your restaurant or catering business.

Calculate Dish Cost

Ingredients

How to use this calculator

๐Ÿ’ฐ How to Use This Calculator

  1. Choose calculation type: dish cost, menu pricing, or profit analysis
  2. For dish cost: enter all ingredients with quantities and costs
  3. For menu pricing: enter your target food cost percentage
  4. For profit analysis: enter menu price and expected sales volume
  5. Review recommendations and adjust as needed

๐Ÿ“ Food Cost Fundamentals

Food Cost Percentage

Food Cost % = (Food Cost รท Menu Price) ร— 100

  • โ€ข Fine dining: 25-35%
  • โ€ข Casual dining: 28-35%
  • โ€ข Fast food: 25-30%
  • โ€ข Catering: 25-30%

Menu Pricing Formula

Menu Price = Food Cost รท Target Food Cost %

Example: $5 food cost รท 0.30 (30%) = $16.67 menu price

๐ŸŒŸ Professional Best Practices

Cost Control Tips

  • โ€ข Update costs quarterly or when prices change significantly
  • โ€ข Include all components (garnishes, sauces, sides)
  • โ€ข Factor in waste and trim loss
  • โ€ข Consider seasonal price fluctuations
  • โ€ข Track actual vs. theoretical food costs

Pricing Strategies

  • โ€ข Use psychological pricing (.95, .99)
  • โ€ข Consider competition and market position
  • โ€ข Balance high and low food cost items
  • โ€ข Review prices regularly

๐Ÿ’ก Additional Considerations

  • โ€ข Labor costs typically run 25-35% of revenue
  • โ€ข Include prep time in cost calculations for complex dishes
  • โ€ข High-value items can have higher food cost percentages
  • โ€ข Popular items can subsidize specialty dishes
  • โ€ข Monitor portion control to maintain costs

โš ๏ธ Common Mistakes to Avoid

  • โ€ข Forgetting to include small ingredients (oil, spices)
  • โ€ข Not accounting for yield loss in preparation
  • โ€ข Using outdated supplier prices
  • โ€ข Ignoring portion size variations
  • โ€ข Setting prices based solely on food cost percentage

About this calculator

Calculate food costs, profit margins, and menu pricing. Essential for restaurants, catering, and food service businesses.

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