How to calculate food cost

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How do you calculate food cost for a dish?

Food cost is the share of a dish's price that goes on ingredients. It starts from the recipe, using the net weight of each ingredient and its current cost.

Short answer

  1. Food cost % = ingredient cost of one portion ÷ selling price without VAT × 100.
  2. Use net weights: the amount that ends up on the plate, after trimming and cooking losses.
  3. Use the current cost per unit of each ingredient. A recipe with an old price understates the cost of the dish.

Worked example (illustrative numbers)

The figures below are an example, not real prices.

One portion, with an illustrative selling price of €12 without VAT
IngredientNet weightCost per kgCost of the portion
Beef150 g€12.00€1.80
Potatoes200 g€1.50€0.30
Sauce50 g€6.00€0.30
Total cost€2.40

Losses and yield

Trimming, cooking and waste reduce the usable weight. A yield percentage on the ingredient adjusts the cost for them, so the portion cost reflects what you actually pay per plate.

Where 4restaurants.net calculates it

  • Recipes with ingredients in grams, millilitres or pieces, including sub-recipes.
  • Cost per portion from the recipe lines and their yield, and food cost % against the price without VAT.
  • Limit: ingredients added as modifiers are deducted from stock, but they are not included in the cost of the dish.
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