The foodcost corresponds to the cost of ingredients and raw materials used to prepare a dish or menu. It is one of the main expense items in restaurant management, and has a direct impact on profitability.
How do you calculate material costs?
🔹 Material cost = (Total cost of ingredients used over the period) ÷ (sales for the period) × 100
This percentage is called the material cost rate, and is used to assess the profitability of dishes. In foodservice, a good material cost rate is generally between 25% and 35% of the selling price in commercial catering.