Food Cost %

Food cost percentage is the share of every rupee of revenue that is spent on the raw ingredients that go into the dish. It's calculated as (cost of ingredients sold / total revenue) × 100. A healthy Indian restaurant runs food cost in the 28–35% band; anything north of 38% silently destroys margin.

If your restaurant did ₹8,00,000 of revenue last month and your ingredient spend (sabzi, dairy, meat, dry goods) was ₹2,72,000, your food cost % was 34%.