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Food cost percentage

For this calculator, food cost percentage is the cost of food used during a period divided by food sales for that same period.

Calculator

Food on hand at the start of the period, valued at cost. Food only.
One amount for food received in the same period. For this calculator, include food purchases, freight-in, and transfers in. Exclude returns, allowances, trade discounts, and transfers out. Do not enter those items in separate fields.
Food still on hand at the end of the same period, valued at cost the same way as the beginning count.
Food sales for the same period. For this calculator, use the amount after discounts, comps, and refunds, and leave out sales tax, beverages, and other non-food revenue.

Food cost percentage · DERIVED

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Enter values to calculate.

Food cost · DERIVED

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Formula

Formula v1

Food cost percentage = (Beginning food inventory + Net food purchases − Ending food inventory) ÷ Food sales × 100

Food cost = Beginning food inventory + Net food purchases − Ending food inventory

  • For this calculator, CostLora defines food cost as beginning food inventory plus net food purchases minus ending food inventory.
  • Food cost percentage is that food cost divided by food sales, multiplied by 100.
  • This is an inventory-based actual food cost for the period. It is not an ideal or theoretical food cost, and it does not cost a single recipe or plate.
  • The percentage is the primary result. The dollar food cost is the numerator.
  • A negative food cost means ending inventory is greater than beginning inventory plus purchases. That can come from a count difference, a stock movement that is not in the figures you entered, or a data-entry issue. It is not automatically one kind of error.
  • A percentage above 100 can occur from the amounts you entered for the period. It is a reason to review those amounts. It is not a judgment about the restaurant.

Assumptions and data sources

No default assumptions: every value is your input.

Every amount is your input. Food cost and food cost percentage are derived from those amounts. The sources describe the inventory method. They do not supply your numbers.

Limitations

  • All four inputs should represent the same period. This calculator does not collect dates and cannot independently verify that the periods match.
  • Food only. Beverages, labor, paper, packaging, smallwares, and other operating expenses are excluded.
  • Net food purchases is one amount. For this calculator, it includes food purchases, freight-in, and transfers in, and it excludes returns, allowances, trade discounts, and transfers out. There are no separate fields for those items.
  • For this calculator, food sales are food revenue for the same period, after discounts, comps, and refunds, excluding sales tax collected for a government and excluding beverage and other non-food revenue.
  • Waste, spoilage, theft, and over-portioning are not separate inputs. When that food is no longer in ending inventory, it remains inside actual food cost. This calculator cannot identify waste.
  • Not a tax form, not GAAP reporting, and not prime cost. No target is applied. The result is the arithmetic of the amounts you enter.

Examples

  • Example: Beginning food inventory 4000, Net food purchases 10000, Ending food inventory 8000, Food sales 20000 → Food cost percentage 30.00%, Food cost $6,000.00