What Should Restaurant Food Costs Be? Restaurant? By carefully managing food costs, restaurants ensure they provide delicious meals at a fair price to both their ideal customer profile and the business.

In order to provide customers with high-quality meals, restaurants must be willing to invest in good ingredients and experienced cooks.

While this may seem like a lot, it is essential to remember that food always takes up a large portion of restaurant expenses. This means that, on average, restaurants spend approximately one-third of their operating expenses budget on food. The average restaurant food cost is between 28 and 35%. Average Restaurant Food Cost in the Industry Restaurant food cost is an important restaurant KPI to track, and is usually expressed as a percentage of sales, which is one of the most critical factors in determining a restaurant’s profitability. This includes the labor cost, cost of ingredients, and other overhead expenses. Restaurant food cost is the amount of money a restaurant spends on food.

Casinos revenue percentage from food