The owner's workbench
Food cost calculator: food cost % and prime cost
Food cost percentage is what you spent on food divided by what you sold. Prime cost adds labor. Know both before you set a menu price.
Illustrative example. Enter your own counts for one period; empty inventory or purchase fields count as $0.00.
Your numbers
Plate helper (optional)
Your results
Cost of goods sold
$23,000.00
Food cost %
30.67%
Prime cost %
58.67%
Menu price needed
$15.00
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Guide: Cost-plus pricing
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Estimates only. Results depend on your inputs.
Formulas
- Cost of goods sold = beginning inventory + purchases − ending inventory
- Food cost % = cost of goods sold ÷ food sales
- Prime cost % = (cost of goods sold + labor) ÷ sales
- Menu price needed = plate cost ÷ target food cost %
Worked example
Illustrative example. Numbers are made up to show the math.
Beginning inventory $8,000.00 + purchases $22,000.00 − ending inventory $7,000.00 = $23,000.00 cost of goods sold.
On sales of $75,000.00, food cost is $23,000.00 ÷ $75,000.00 = 30.67%. With labor of $21,000.00, prime cost is $44,000.00 ÷ $75,000.00 = 58.67%.
A plate cost of $4.50 at a 30% target food cost gives a menu price of $4.50 ÷ 30% = $15.00.
How to use it
- Enter beginning inventory, purchases and ending inventory for one period.
- Enter food sales for the same period, and labor if you want prime cost.
- Use the plate helper to turn a plate cost and target % into a menu price.
Questions owners ask
What is food cost percentage?
The cost of the food you used in a period divided by your food sales for the same period. Cost of food used = beginning inventory + purchases − ending inventory.
What is prime cost?
Prime cost is cost of goods sold plus labor. As a percentage, it is that total divided by sales for the same period.
How do I price a menu item from plate cost?
Divide the plate cost by the food cost % you are aiming for. A $4.50 plate at a 30% target is $4.50 ÷ 30% = $15.00. Choose the target from your own numbers and overhead.
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Sources
No external research cited. Calculations and illustrative assumptions are shown above; this is not evidence of a real owner outcome.
Educational content, not tax, legal or investment advice.
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