What Is a Good Food Cost Percentage for a Restaurant?

A good food cost percentage for most restaurants is 28-35%. But that range is almost meaningless without context. The right target for your restaurant depends on your concept type, labor model, rent structure, and whether you are beverage-heavy. Here is how to find your actual number -- and what to do when you are above it.

Food Cost Percentage Benchmarks by Restaurant Type

Restaurant Type	Target Food Cost %
Fine dining	28-32%
Casual / polished casual	30-35%
Fast casual	25-30%
Bar / gastropub	20-28%
Seafood / steakhouse	35-42%
Pizza / pasta focused	22-28%
Coffee shop / cafe	25-35%

Seafood and steakhouses routinely run 38-42% food cost because premium protein is expensive and guests expect quality. They compensate by keeping labor lean and volume high.

Bar-forward concepts run low food cost percentages because alcohol margins are exceptional -- typical beverage cost is 18-24% -- which pulls the blended average down significantly.

Why Your Target Matters More Than the Industry Average

Your food cost target is not an industry stat -- it is a number derived from your own P&L.

Start from the bottom: what net margin do you need to survive and grow? Work backwards through labor, rent, and other overhead. Whatever is left is what you can spend on food.

A restaurant with 38% labor costs needs roughly a 22-26% food cost target to survive. A lean food truck with 20% labor has much more flexibility. The math has to work for your operation specifically.

What Happens When Food Cost Is Too High

• Margins disappear even at full capacity -- you are working harder for less profit
• Volume increases amplify the problem rather than solving it
• Prime cost exceeds 65-70%, leaving insufficient margin for overhead and profit

What Happens When Food Cost Is Too Low

• Usually signals under-portioning -- and guests notice and do not come back
• Or ingredient quality cuts that damage repeat visits and reviews
• Technically possible to run 18% food cost, but it often means a worse product

The Right Process to Hit Your Target

1. Calculate your actual food cost % on every dish (not just overall)
2. Identify which dishes are above your target -- and by how much
3. Decide: reprice, re-engineer (reduce portion or swap ingredient), or remove
4. Recalculate after every significant ingredient price change
5. Track weekly so drift gets caught early

Frequently Asked Questions

Is 30% a good food cost percentage?

30% is a healthy food cost percentage for most casual and polished casual dining concepts. Whether it is "good" depends on your labor costs -- if labor is at 35%, a 30% food cost gives you a 65% prime cost, which is at the high end of sustainable for full-service restaurants.

Why do some restaurants run higher food cost percentages than others?

Concept type is the primary driver. Steakhouses and seafood restaurants run 35-42% food cost because premium protein is expensive and expected. Pizza and pasta concepts can run 22-28% because grain-based ingredients are inherently lower cost.

How do I lower my food cost percentage without raising prices?

Focus on operational improvements first: tighten portion control with scales, reduce prep waste, update recipe costs to reflect current prices, and cross-utilize ingredients to minimize spoilage. These changes often recover 2-3 percentage points without touching your menu prices.

What should I do if my food cost is above 40%?

First, identify which specific dishes are driving it -- your overall food cost is the average, but some items may be at 50%+ while others are well-controlled. Address the worst offenders through repricing or reformulation. Also check for operational issues: over-portioning, spoilage, or supplier price increases you have not caught.

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