Food cost percentage: the one number that decides if your dish makes money
If you don't know your food cost %, you're pricing blind. Here's the formula, a worked example, and where most small kitchens leak profit.
Every dish you sell has one number that matters more than the menu price: the food cost percentage. It's the cost of the ingredients divided by the selling price. If your ingredients cost €4 and you sell the plate for €16, your food cost is 25%.
Why it's the number that matters
Rent, wages and everything else are mostly fixed. Ingredients are the one cost you control directly on every single plate. A kitchen running at 30% food cost keeps €7 of every €10 in margin for everything else. One running at 45% is working hard to break even.
The target
Most profitable small kitchens sit between 25% and 35% food cost. Below 25% and you're probably overcharging. Above 40% and you're bleeding.
A worked example
A burger with bun (€0.60), patty (€1.80), cheese (€0.40), toppings (€0.50), fries (€0.70) = €4.00 ingredients. At 30% target food cost, sell it for €4.00 ÷ 0.30 = €13.33. Round to €13.50 or €13.90.
Where small kitchens leak profit
- Portion drift — the "handful" that grows each week. Weigh your high-cost items (meat, cheese, oil).
- Yield ignored — trim and cooking loss. If you buy 1 kg and only 800 g reaches the plate, your real ingredient cost is 25% higher than the sticker price.
- No VAT clarity — quote net to yourself, gross to the customer, and know which is which on every price.
- Pricing from gut, not margin — "that feels right" is how you end up under-priced on your best seller.
Work out food cost % on your top 5 dishes first. Fix those, and the rest of the menu usually follows.
Try TellerKalk
TellerKalk calculates cost per plate, food-cost % and a suggested selling price as you type — with VAT, yield, nutrition and allergens built in. 14-day free trial, then €9.99/month. 100% offline, no cloud. Learn more.
