Food Cost Percentage Calculator
Price the plate, not the guess — know your true margin before it hits the menu.
Work out a dish's food cost percentage, gross profit and a GST-correct menu price for your café or restaurant. Enter what the plate costs you and what you charge, and the calculator strips out GST so the number you see is the true food cost — the one your accountant and your margins actually care about.
A planning guide from your ingredient cost and menu price. Benchmarks vary by venue and produce — not financial advice.
How food cost percentage is worked out
Cost ÷ price, with GST handled first
Food cost percentage = ingredient cost ÷ menu price × 100. That's the whole idea — what a plate costs you to make, expressed as a share of what you sell it for. The catch in Australia is GST. Menu prices normally include 10% GST, which isn't yours to keep — you remit it to the ATO — so the true food cost divides the price by 1.1 first to get the ex-GST revenue you actually earn. To price the other way round, a suggested price = ingredient cost ÷ target %. And because everything above the ingredient cost is gross profit, food cost % and gross profit % always add to 100.
Worked example
A dish costs $6 in ingredients and sells for $22 inc-GST. Divide by the menu price and it looks like 27.3% (6 ÷ 22). But strip the GST — 22 ÷ 1.1 = $20 ex-GST — and the true food cost is 30% (6 ÷ 20), leaving $16 gross profit on the plate. Turn it around: to hit a 30% target you'd price the dish at 6 ÷ 0.30 = $20 ex-GST, which is $22 on the menu once GST is added. Same numbers, three different questions answered.
Food cost isn't your only cost. Labour, rent, power and wastage all come out of the gross profit, so a healthy food cost % is necessary but not sufficient. Use it alongside your profit margin and break-even numbers, not on its own.
What food cost percentage should you aim for?
There's no single "right" number — it depends on your venue, your produce and your other costs. These are the widely used planning benchmarks:
- Cafés — ~25–28%. Simpler menus and high volume keep food cost lower; coffee and retail lift the blended margin.
- Restaurants — ~28–32%. More complex dishes and better produce push it up; fine dining can sit higher still.
- Beverages — ~20%. Drinks carry a much higher margin than food, which is why the bar often carries the kitchen.
Treat these as a starting range, not a target to chase blindly. A dish at 35% can be fine if it's a hero item that fills seats; a 22% dish can still lose money if labour to prep it is high. What matters is the blended food cost across the menu, and whether food, labour and overheads together leave a profit. Set your target in the calculator and price to it, then review the mix.
GST, menu pricing and gross profit
Why GST changes the number
Australian menu prices are almost always GST-inclusive, but the 10% GST belongs to the ATO, not you. Measuring food cost against the sticker price flatters the figure — a $22 dish is really $20 of revenue to your business. Always divide a GST-inclusive price by 1.1 before working out the true food cost, or you'll price and report on a number that's about a tenth too generous.
Pricing to a target
To set a price from a target food cost, use ingredient cost ÷ target % for the ex-GST price, then add GST for the menu. A $6 dish at 28% is 6 ÷ 0.28 = $21.43 ex-GST, about $23.60 on the menu. Round to a sensible price point and check it against your neighbours — the maths gives you the floor, the market sets the ceiling.
Food cost and gross profit are two sides of one coin
Because gross profit is simply revenue less the cost of the food, food cost % + gross profit % = 100%. A 30% food cost is a 70% gross profit margin on the plate. That gross profit is what pays for everything else — wages, rent, power, waste — so watch both numbers together, and remember a lower food cost % only helps if it doesn't cost you sales.
❓ Frequently asked Frequently asked questions
How do I calculate food cost percentage?
Food cost percentage is the ingredient (or plate) cost divided by the menu price, times 100. If a dish costs you $6 in ingredients and sells for $22, that's 6 ÷ 22 = 27.3% on the menu price. In Australia menu prices normally include 10% GST, so for a true, comparable figure you divide the price by 1.1 first: 22 ÷ 1.1 = $20 ex-GST, and 6 ÷ 20 = 30%. Always compare like with like — either both figures GST-inclusive or both ex-GST.
What food cost percentage should a restaurant aim for?
A common target is 28–32% for a restaurant, 25–28% for a café, and around 20% for beverages (drinks carry a much higher margin than food). These are guides, not rules — a fine-dining venue with expensive produce may run higher, while a high-volume café keeps it lower. What matters is that food, labour and overheads together leave a profit, so pick a target that works for your whole cost structure and price to it.
How does GST affect food cost?
Australian menu prices are normally GST-inclusive, but the 10% GST isn't yours to keep — you remit it to the ATO. So the true food cost should be measured against the ex-GST price. Divide a GST-inclusive menu price by 1.1 to strip the GST out, then divide the ingredient cost by that figure. A $22 inc-GST dish is really $20 of revenue to you, so a $6 ingredient cost is 30% of the ex-GST price, not the 27.3% you'd get by dividing by $22.
How do I price a menu item?
Work backwards from a target food cost percentage: suggested ex-GST price = ingredient cost ÷ target %. A $6 dish at a 30% target is 6 ÷ 0.30 = $20 ex-GST, which is $22 once you add 10% GST for the menu. Then sanity-check the number against your market and your other prices, and remember the food cost only covers ingredients — labour, rent and wastage still have to come out of the gross profit.
How do I lower my food cost percentage?
Tighten portions and standardise recipes so every plate costs the same, cut wastage and spoilage, review supplier pricing and buy to par levels, and re-engineer the menu toward higher-margin dishes. You can also lift the price where the market allows. Small changes compound: shaving a dollar of ingredient cost or adding a dollar to the price on a popular dish moves the percentage and the gross profit on every single serve you sell.
Where these figures come from
Food cost percentage is a standard hospitality management measure, not a legislated figure. The method here follows mainstream restaurant cost-accounting practice, with the GST handling set to Australia's 10% goods and services tax.
- Food cost % — ingredient (plate) cost ÷ menu price × 100; measured against the ex-GST price for a true figure.
- GST — Australia's goods and services tax is 10%; a GST-inclusive price ÷ 1.1 gives the ex-GST revenue you keep.
- Suggested price — ingredient cost ÷ target food cost %, for the ex-GST price (add 10% for the menu).
- Benchmarks — typical planning ranges: cafés ~25–28%, restaurants ~28–32%, beverages ~20%. Food cost % + gross profit % = 100%.
Last checked: July 2026. This is a planning estimate, not financial or tax advice. Benchmarks vary by venue, produce and region — use your own recipe costs and confirm your GST treatment with your accountant or the ATO.
Select the question that matches where you are right now.
The headline number is the dish's true food cost percentage — the ingredient cost as a share of the ex-GST menu price. The breakdown shows the ex-GST revenue, the gross profit in dollars and as a percentage, and a suggested price to hit your target.
Compare it to your target and your café/restaurant benchmark. If it's high, either the plate costs too much to make or the price is too low — the suggested price tells you where it would need to sit.
It's not your total cost or your net profit. Labour, rent, power and wastage still come out of the gross profit, and it isn't tax advice — confirm GST treatment with your accountant.
Measuring against the inc-GST price understates food cost by about a tenth. The true figure divides the price by 1.1 first, so you price and report on the revenue you actually keep.
Three things move the percentage: what the plate costs you, what you charge, and whether GST is stripped out first.
Portion sizes, recipe consistency and supplier pricing all feed the plate cost. Standardise recipes so every serve costs the same — variance is where margin quietly leaks.
A dollar on the price moves the percentage on every serve. Price to a target, then check it against the market — the maths sets the floor, demand sets the ceiling.
Whether prices include GST changes the true figure by ~10%. Your target food cost % turns the same inputs into a suggested price, so you can price forward or check backward.
A few habits keep food cost honest across the whole menu, not just one dish.
Work out the plate cost for each menu item, not a rough average. The blended food cost across what actually sells is the number that hits your P&L.
Spoilage, over-portioning and trim all raise the real food cost above the recipe. Buy to par, use standard scoops and weigh key ingredients.
Push the dishes that are both popular and high-margin, and rework or reprice the ones that are neither. Small shifts in mix move the blended percentage.
Food cost is one lever. Model the rest of the business alongside it.