What is your food cost, really?
Most kitchens divide supplier bills by sales and call it food cost. That measures your buying rhythm, not your kitchen. This one insists on the stock count.
One period — a week or a month
Fill in opening stock, purchases, closing stock and food sales.
The stock count is what separates a food cost percentage from a guess.
How it works
Food cost percentage is the share of your food revenue that goes on the ingredients you actually sold. The formula is simple; the part people skip is that cost of goods sold is not the same as purchases.
Food cost % = (opening stock + purchases − closing stock) ÷ food sales × 100
What you bought in a month and what you cooked and sold in a month are different numbers, because inventory sits in between. Skip the stock count and a month where you stocked up before Deepavali looks terrible, and the month after looks brilliant. Neither is true.
What the number should be
There is no single right answer — it depends on format, cuisine, and where you compete. The bands in the calculator are the working ranges the trade uses: 20–25% for a cart or tea stall, 25–30% for QSR, 28–35% for casual dining, 30–38% for a vegetarian mess, 30–40% for fine dining.
Two things matter more than hitting a band. The direction of travel: a kitchen that moved from 34% to 31% is in better shape than one that has sat at 30% for two years without knowing why. And prime cost — food plus labour. Above 65% of revenue, rent and utilities will eat whatever is left.