 |
| Food Cost Analysis and Calculate |
Food Cost Analysis and How to Calculate the Cost of a Dish
Food Cost Analysis helps you determine how much it costs to prepare a dish and how much profit you make from each sale. It’s a clear indicator of how well a kitchen is being managed—and a powerful way to identify where you might be losing money.
Mastering Food Cost Analysis: The Key to Restaurant Profitability
In the world of hospitality and food service, every gram of ingredient and every cent on a plate matters. That’s why Food Cost Analysis is not just a task for accountants—it's a strategic tool for chefs, restaurant managers, and business owners who want to stay profitable while maintaining quality.
The Basic Formula:
Food Cost % = (Cost of Ingredients / Selling Price) × 100
(1.50 / 6.00) × 100 = 25%
A food cost between 25%–35% is generally considered healthy in the industry.
How to Calculate the Cost of a Dish
Ingredient /Quantity /Used Price per Unit /Total Cost
Chicken 200g $5 per kg $1.00
Onion 50g $1 per kg $0.05
Oil 20ml $2 per liter $0.04
Spices — estimated $0.10
Total Cost $1.19
Selling Price: $5.00
Food Cost % = 23.8%
Why This Matters
You identify high-cost or low-margin items
You make informed decisions about suppliers and inventory
You control portion sizes, waste, and shrinkage
Stars (Low cost, high popularity)
Plowhorses (High cost, high popularity)
Puzzles (Low cost, low popularity)
Dogs (High cost, low popularity)
This helps you redesign your menu for maximum profitability without compromising guest satisfaction.
Final Thoughts
In today’s competitive food industry, knowing your numbers is as important as knowing your flavors. Whether you're a chef, a food consultant, or a restaurant owner, mastering food cost analysis can be the difference between surviving and thriving.