Food Cost

Food service operations are businesses. This means that someone in the operation
has to worry about budgets, cost accounting, bills and profits.
Food Cost Percentages
An individual operation’s food cost percentage is usually determined by the budget.
The chef is interested in this figure because it tells him or her whether the menu prices
and the costs for each item are in line
The food cost percentage of a menu item equals the raw food cost or portion cost
divided by the menu price:

Percentage= food cost

Menu price

You can use this figure in two ways:

1. If you know the menu price and want to see what your food cost should be in order
to be within the budget, multiply the menu rice by the percentage.

Food cost= menu price x percentage

Example: Menu price is P 6.75 and food cost percentage is 35%

35% = 0.35

6.75 x 0.35 = P 2.36

2. If you know the food cost and want to determine what the menu price should be at a
particular percentage, divide the cost by the percentage:

Menu price= food cost

Percentage

Example: Food cost is $ 1.60 and food cost percentage is 40%

P 1.60 = P 1.60 = P4.00

40% 0.40
The following problems are calculations with food cost percentages, portion cost, and
menu price. For each problem, two of these figures are given. Find the third.

Food cost percentage Portion cost Menu price

a. _____________ P 3.25 P 6.95

b. 40% __________ P 3.50

c. 30% P 7.85 __________

d. ____________ P 9.50 P 15.45

e. 35% P 11.85 __________

f. 30% __________ P23.70

g._____________ P 8.90 P 14.50