Food Cost Percentage Calculator
Food cost percentage is your ingredient cost divided by the selling price. Gross profit is the rest. The calculator below works both out, then shows what the plate really earns once packaging, staff time and waste are added, which is usually a good deal less than the GP suggests.
How much should you charge for cafe menu items?
Food cost percentage is your ingredient cost divided by the selling price. Gross profit is the rest. The calculator below works both out, then shows what the plate really earns once packaging, staff time and waste are added, which is usually a good deal less than the GP suggests.
Food Cost Percentage Calculator: FAQs
How do I calculate food cost percentage?
Divide the ingredient cost of the dish by its selling price and multiply by 100. A sandwich costing £1.35 sold at £4.50 is a 30 percent food cost, which is a 70 percent gross profit.
What food cost percentage should a cafe aim for?
Most UK cafes target 25 to 32 percent on food, which is a 68 to 75 percent GP. Drinks usually run much lower and subsidise the food, which is why a coffee-led cafe can survive a food GP that a food-led one could not.
Is gross profit the same as profit?
No, and the gap is where cafes get caught. GP counts only the ingredients. Packaging, the staff time to make the dish, and the waste at close all sit outside it, and together they routinely turn a 70 percent GP into a 45 to 50 percent true margin.
Should takeaway and eat-in be priced the same?
They have different costs, because takeaway carries a cup, lid and bag that eat-in does not, and in the UK the VAT treatment can differ too. Costing them as separate tiers is more honest than averaging.
How often should I re-cost the menu?
Whenever a supplier price moves materially, and at minimum each season. A menu costed at opening and left alone is the single most common reason a busy cafe makes no money.