Food & Cooking⏱ 4 min read
How to Calculate Food Cost Per Serving for a Restaurant
Food cost percentage is the most critical metric in food service. Here is how to cost each dish, set profitable prices, and track variance.
Restaurants that thrive manage food cost percentage obsessively. Those that fail often discover — too late — that they were selling dishes below cost once all ingredients are properly accounted for.
Cost Per Serving Calculation
Cost per serving = Sum of (Qty used / Qty purchased x Purchase price)
Example: Bolognese pasta (serves 1):
Pasta 80g of 500g pack at £1.20: 80/500 x £1.20 = £0.19
Beef mince 150g of 500g at £4.50: 150/500 x £4.50 = £1.35
Tinned tomatoes 100g of 400g at £0.65: = £0.16
Onion, garlic, herbs, oil: £0.14
Total ingredient cost: £1.84
Food Cost Percentage
Food Cost % = (Cost per serving / Selling price) x 100
Industry benchmarks:
Fine dining: 25-35% | Casual: 28-35% | Cafes: 25-32%
Target 30% food cost on £1.84 cost:
Required price = £1.84 / 0.30 = £6.13 -> sell at £6.50-£7.00
Yield and Waste Adjustment
Yield % = Usable weight / Original weight x 100
Chicken breast (trimmed): ~90% yield
Fresh salmon fillet: ~75% yield
Onion (peeled): ~85% yield
Adjusted cost per usable kg:
Chicken at £6/kg, 90% yield: true cost = £6/0.90 = £6.67/kg
Failing to adjust yield undercosted every dish -- adds up to thousands per year.
Tracking Variance
Theoretical food cost (from recipes) vs Actual food cost (from invoices)
Variance = Actual % - Theoretical %
Acceptable: 0-2% | Concerning: 3-5% | Critical: 5%+
Monthly calculation:
Opening stock + Purchases - Closing stock = COGS
COGS / Revenue = Actual food cost %