Two food costs, one name
Plate cost percentage is theoretical: recipe cost ÷ menu price, item by item. Period cost percentage is what actually happened: (opening inventory + purchases − closing inventory) ÷ food sales for the week or month. The gap between them is waste, over-portioning, theft, spoilage, and comps — typically 2–5 points in a well-run kitchen and the first place to look when the P&L disappoints a menu that "should" work.
Targets by concept
| Concept | Typical food cost | Why |
|---|---|---|
| Bar / beverage program | 18 – 24% | Liquor margins carry the house |
| Pizza | 20 – 30% | Cheap ingredients, high perceived value |
| Quick service / fast casual | 25 – 30% | Low service labor allows tighter food spend |
| Casual full-service | 28 – 35% | The broad middle of the industry |
| Steakhouse / fine dining | 30 – 40% | High plate cost, much higher check and margin dollars |
| Food trucks | 25 – 32% | Low rent gives room, small menus keep waste down |
Notice fine dining runs the highest percentage while making the most money per cover — proof the percentage is a constraint, not a score. A steakhouse at 38% food cost and $48 checks banks $29 gross per plate; a QSR at 27% and $11 checks banks $8.
How to pick your target
Work backwards from the P&L you need: if labor runs 30%, occupancy 8%, operating costs 12%, and you want 10% profit, food gets what's left — 30ish. Concepts with cheaper labor can afford richer plates; concepts with expensive service can't. Then apply it item by item with the pricing calculator, letting stars run a little rich and sides run lean — the blended number is the one that has to hit target.
When the number drifts
- Re-cost the top ten sellers first. They move the blend more than everything else combined.
- Check portions before prices. A heavy hand on the protein scale is a silent point or two.
- Audit waste and comps weekly. The period-vs-plate gap names its own culprits.
- Then raise prices — quarters and half-dollars on popular items, which guests rarely register. The psychology that makes it painless.
Check any item in seconds
The free calculators price new items and audit existing ones against your target. The $29 workbook adds recipe costing, whole-menu pricing, menu engineering, and the weekly period-cost tracker.
Free Food Cost Checker Full Workbook — $29