keisoku

Restaurant Food Cost Ratio Calculator

Enter your revenue and food cost to instantly calculate a restaurant's food cost ratio. It also shows your gross margin and gross profit, and works for the whole store or a single menu item (selling price and cost).

Input

Calculation unit

$
$

Result

Cost ratio

30.0%

Around 30% is typical (varies by restaurant type)

Gross margin

70.0 %

Gross profit

$2,100,000.00

Revenue

$3,000,000.00

How it works

  • The cost ratio is calculated as "food cost ÷ revenue × 100". It shows what share of your sales is taken up by food costs.
  • Gross margin is "100 − cost ratio" and gross profit is "revenue − food cost". Gross profit is the base earnings before paying for labor, rent, and other expenses.
  • Use "Whole store (revenue)" to enter the revenue and food cost for a period, or "Per menu item (selling price)" to enter the selling price and cost of a single dish. The formula is the same for both.
  • A cost ratio of around 30% is a common benchmark, but it varies by restaurant type: sushi and yakiniku tend to run higher, while cafe and izakaya drinks tend to run lower.
  • The higher the cost ratio, the heavier the burden of food costs and the harder it is to turn a profit. Consider improving it by reviewing prices, portion sizes, and reducing waste.
  • Note: the food cost here is a purchase-based estimate and does not include labor, rent, utilities, or other expenses. For actual profit management, cross-check against your store's accounting figures.