Food cost basics
Food cost is the cost of ingredients used to make a dish. Restaurants usually track it by recipe and by total period so they can see whether money is leaking through waste poor purchasing over portioning or theft.
food cost percentage equals ingredient cost divided by selling price multiplied by 100
| Factor | Why it matters | Example |
|---|---|---|
| Ingredients | Direct cost of dish | Rice chicken vegetables spices oil |
| Portion size | Controls cost and customer value | Measured serving size |
| Labor | Time and skill needed | Complex prep or plating |
| Waste | Spoilage mistakes and leftovers | Expired stock or over prep |
| Packaging | Delivery and takeaway cost | Containers bags labels |
| Overheads | Rent utilities equipment admin | Business survival cost |
| Market value | What customers compare | Nearby alternatives and brand position |
Portion control is not cheating
Portion control means giving the customer the promised amount consistently. Without portion control customers get different experiences and the restaurant cannot trust its own costing.
Reducing cost by damaging taste portion honesty or safety can hurt repeat business. Smart cost control removes waste before removing value.
This article is for general education and restaurant planning. Real restaurants must follow local food safety rules licensing tax employment fire safety and public health requirements.
Food safety decisions should be guided by trained staff local authorities and approved professional standards.
Food cost questions
Sales can be high while ingredient waste labor cost rent delivery commission discounts or poor pricing consume profit.