In this article +
The short answer
Kitchen food cost % = (Opening stock + Purchases − Closing stock) ÷ Food sales × 100. Plate food cost % = Cost of ingredients in one plate ÷ Menu price (before GST) × 100. Use the first to check your kitchen weekly, and the second to price each dish. Both calculators are below.
Calculator 1: Your kitchen's food cost %
Enter a week or a month of numbers. Value stock at what you paid for it, not what you'd sell it for. Use sales before GST.
What the result means
- Under 25%: either you're very efficient, or closing stock was over-counted. Double-check the count.
- 25-35%: the usual band for many Indian restaurants, depending on menu and format.
- 35-40%: worth investigating. Start with portions and waste.
- Above 40%: something is leaking. Look at variance, waste and prices.
These ranges are rough guides, not rules. A steakhouse and a dosa joint will never have the same number. Compare yourself with your own last month first.
Calculator 2: Cost of one plate
List what goes into one plate, the quantity in kilos or litres, and what you pay per kilo or litre. Add an allowance for trimming and wastage, then your menu price.
Default values are an illustrative paneer dish. Replace them with your own.
How to use it for pricing
The "Price for target %" box tells you what the dish should cost on the menu to hit your target food cost. If your menu price is well below it, you have three choices: raise the price, reduce the cost (portion, garnish, supplier), or keep it as a deliberate loss-leader that sells other things.
Every owner's first plate costing
"Our bestseller is ₹280 and costs us ₹158 to make?" Yes. It's been like that since 2022. The cream got expensive and nobody told the menu.
The formula, step by step
Kitchen food cost
| Step | What to do |
|---|---|
| 1 | Count and value stock on day 1 (opening stock) |
| 2 | Add up all food purchases during the period |
| 3 | Count and value stock on the last day (closing stock) |
| 4 | Food used = Opening + Purchases − Closing |
| 5 | Food cost % = Food used ÷ Food sales × 100 |
Why not just purchases ÷ sales? Because what you bought isn't what you used. If you stocked up on 50 kg of rice this week, purchases-only maths makes this week look terrible and next week look brilliant. Our food cost percentage guide explains with examples.
Plate cost
Plate cost = Σ (Quantity per plate × Cost per unit) × (1 + Wastage allowance)
Plate food cost % = Plate cost ÷ Menu price before GST × 100
Worked example
A plate of paneer butter masala, illustrative quantities:
| Ingredient | Qty / plate | ₹ per kg | Cost |
|---|---|---|---|
| Paneer | 0.12 kg | 420 | ₹50.4 |
| Butter and cream | 0.04 kg | 520 | ₹20.8 |
| Tomato and onion | 0.15 kg | 45 | ₹6.8 |
| Spices and oil | 0.02 kg | 300 | ₹6.0 |
| Subtotal | ₹84.0 | ||
| + 5% wastage | ₹88.2 |
At a menu price of ₹320, food cost is 27.6%. To hit 30%, the dish could be priced as low as ₹294. To hit 25%, it would need to be ₹353.
The limits of food cost percentage
Food cost % is useful but it lies by omission:
- It ignores volume. A 45% food cost dish that sells 200 plates may earn more rupees than a 20% dish that sells 10.
- It ignores labour. A dish with low food cost but 25 minutes of prep isn't cheap.
- It's only as good as your count. A wrong closing stock gives a wrong answer.
- It hides channel differences. Aggregator commissions change the real margin on delivery orders.
So use food cost % with margin in rupees and sales volume. That's what menu engineering does.
Free template
Prefer a spreadsheet? Make one with these columns and the formulas above:
Ingredient | Unit | Qty per plate | Cost per unit | Line cost | Wastage % | Plate cost | Menu price | Food cost %
When you outgrow it, read inventory software vs Excel.
Frequently asked questions
What is the formula for food cost?
Food cost % = (Opening stock + Purchases − Closing stock) ÷ Food sales × 100. For one dish: ingredient cost ÷ menu price × 100.
Should I use sales with or without GST?
Without GST. GST is collected for the government, not earned by you.
How often should I calculate food cost?
Weekly for the kitchen. Re-cost each dish whenever a major ingredient price changes, or at least every quarter.
What is a good plate food cost?
It depends on the dish and format. Many restaurants aim for roughly 25-35% across the menu, with some dishes higher and others lower.
See it in your Kitchen.
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