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Finance

Food Cost Percentage: The Number Every Restaurant Owner Should Watch

7 min readEatsDesk Team

Revenue looks great until you pay suppliers. Food cost percentage (ingredient cost ÷ food sales) tells you if your menu pricing and portion control still work. For fast food, aim to know this weekly — not at year-end.

Simple formula

Food Cost % = (Opening inventory + Purchases − Closing inventory) ÷ Food sales × 100. Target ranges vary by concept — burgers and fries often land 28–35% if operations are tight. Drift above your baseline means theft, waste, or wrong pricing.

How POS helps

  • Recipe cards per menu item with ingredient quantities
  • Theoretical usage vs actual stock variance reports
  • Top sellers ranked by profit, not just revenue
  • Deal and discount impact on margin visible before you launch promos

EatsDesk ties menu sales to inventory consumption so managers see which items erode margin — and which modifiers (extra cheese, drinks) save the ticket.

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