How Do I Figure Out Food Cost?

Trying to figure this out for the first time? It's really just comparing what a dish costs you against what you're charging for it.

Start by writing out every ingredient that goes into the dish, and we mean everything, even the small stuff like a drizzle of oil or a pinch of seasoning. People skip these and wonder why their numbers are off. Price each one out, figure out how much of it actually lands on the plate, and add it all together. That total is your ingredient cost.

From there, divide that number by what you're selling the dish for, then multiply by 100. That's your food cost percentage.

Quick example a burger that costs $3 to make and sells for $12. Divide 3 by 12; you get 0.25, multiply by 100, and you're at 25%.

Two things worth remembering. Prices don't sit still, so check in with your suppliers instead of trusting old numbers. And portions need to be measured, not guessed. If today's cook is heavier-handed with cheese than yesterday's, your cost calculation is off before you even start.

Once you've got one dish figured out, run the same process on the rest of your menu. That's really the only way to know which dishes are actually earning their keep and which ones need a second look.