Mastering Your Menu Profitability
For restaurants, catering businesses, and even home bakers, knowing the exact cost of your food is the difference between profit and loss. Our Food Cost Calculator simplifies the complex task of recipe costing, allowing you to price your menu items with confidence and data-backed accuracy.
Understanding Cost of Goods Sold
The Cost of Goods Sold (COGS) is a crucial metric for any food business. It represents the direct costs attributable to the production of the food sold in your restaurant.
Food Cost % = (Total Ingredient Cost / Menu Price) x 100
Industry standards suggest keeping this between 28% and 35% for a sustainable business model. Use our Margin Calculator to further analyze your profitability.
Strategic Menu Pricing
- Markup Strategy: Once you know your cost, use our Markup Calculator to determine the best selling price.
- Recipe Optimization: Identify which ingredients are eating into your margins.
- Dynamic Scaling: Easily adjust serving sizes to see how costs scale.