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How to calculate food cost per serving

1. Cost each ingredient by usage

Ingredient cost = pack price ÷ pack size × amount used (same units). Example: flour costs $3.50 for 2 kg; 300 g used costs 3.50 ÷ 2000 × 300 = $0.53.

2. Add yield loss

Trimmed vegetables, peeled fruit or meat lose weight. Divide by the yield percentage: if carrots are 85% usable, cost ÷ 0.85.

3. Cost per serving

Cost per serving = total recipe cost ÷ servings.

4. Food cost percentage

Food cost % = ingredient cost per serving ÷ menu price × 100. Restaurants commonly target 25–35%; bakeries often 20–30% because labour is higher. To hit a target: price = ingredient cost ÷ target % (e.g. $1.20 ÷ 0.30 = $4.00) — choose "Ingredient multiplier" with 3.33 in the calculator.

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FAQ

What is a good food cost percentage?

Typically 25–35% for restaurants and roughly 20–30% for bakeries, but it depends on labor and overhead.

How do I calculate cost per serving?

Add up the cost of the amount of each ingredient used, then divide by the number of servings.