Glossary

What is Food Cost Percentage?

Last updated: July 7, 2026

Food cost percentage is the portion of food sales spent on food inventory, calculated as (beginning inventory + purchases − ending inventory) ÷ food sales. Full-service restaurants typically target 28-35%; every point above target is margin lost.

Food Cost Percentage example with real numbers

With $15,000 beginning inventory, $42,000 in purchases, $14,000 ending inventory, and $140,000 in food sales, food cost is $43,000 ÷ $140,000 = 30.7%.

How multi-unit restaurant groups manage food cost percentage

Vento computes food cost continuously from POS and invoice data across every location, so a location running 3 points hot is flagged in days, not discovered at month close.