The food cost formula
Cost of food sold = beginning inventory + food purchases − ending inventory. Food cost percentage = cost of food sold ÷ food sales. Count inventory the same way at the start and end of every period, at what you paid for it.
With the defaults, $8,000 of opening inventory plus $22,000 of purchases minus $7,500 left at the end means $22,500 of food was used. Against $72,000 of food sales, that is a 31.25% food cost, $900 over a 30% target.
Food cost percentage vs plate cost
This calculator measures a whole period, so it includes waste, spoilage, staff meals and portioning mistakes. Plate cost is what one dish should cost on paper. When the period percentage runs well above what your plate costs suggest, the gap is usually waste, theft or portions drifting larger.
To price a single dish, use the menu pricing calculator instead.
The formulas behind it
Every result cell is a plain spreadsheet formula, so you can check the math or rebuild it yourself.
| Cell | Result | Formula |
|---|---|---|
| B9 | Cost of food sold | =B2+B3-B4 |
| B10 | Food cost percentage | =B9/B5 |
| B11 | Gross profit on food | =B5-B9 |
| B12 | Food cost at your target | =B5*B6% |
| B13 | Over (+) or under (−) target | =B9-B12 |