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How to Calculate Food Cost Percentage
Formula
Food cost percentage is the ratio of ingredient cost to selling price. A healthy food cost for restaurants is 28-32%, meaning ingredients should cost about one-third of the menu price.
Markup percentage shows how much you mark up over the ingredient cost. A 30% food cost corresponds to a 233% markup.
Common use cases:
- Restaurant menu pricing
- Food truck cost analysis
- Catering profit planning
Frequently Asked Questions
Dr. David Park
Applied Mathematician, PhD Mathematics
David holds a PhD in Applied Mathematics from MIT. He has published research on numerical methods and computational algorithms used in engineering and scientific calculators.
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