Glossary
Food Cost %
The percentage of revenue spent on raw ingredients.
Definition
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.
Example
Worked example
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%.
Tags
financep&l
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