The ideal food cost percentage is not one number — it depends on your segment, labor model, and check average. Here is what the data says for each restaurant type.
The one-sentence answer
The ideal food cost percentage for most restaurants is 28–35% — but what matters more is keeping prime cost (food + labor) under 60% of revenue.
| Type | Ideal FC% | Typical range | Prime Cost |
|---|---|---|---|
| Fast Food / QSR | 25–28% | 22–30% | 50–58% |
| Fast Casual | 28–32% | 25–33% | 53–62% |
| Casual Dining | 28–33% | 26–36% | 56–65% |
| Fine Dining | 30–35% | 28–40% | 58–68% |
| Bakery / Café | 28–33% | 25–38% | 55–65% |
| Bar / Gastropub | 22–28% | 20–32% | 50–60% |
| Pizza | 25–30% | 22–33% | 52–62% |
| Food Truck | 28–35% | 25–38% | 55–65% |
| Catering | 25–32% | 22–38% | 50–62% |
Prime cost = food cost + labor cost. The 60% prime cost target is the key profitability threshold.
Three factors determine what food cost percentage is "ideal" for a specific restaurant:
Average check size
A fine dining restaurant selling $60 entrées can afford $18–20 in ingredient cost (30–33%). A fast food restaurant selling $10 combos can only afford $2.50–3.00 (25–30%). Higher check = more room for expensive ingredients.
Labor cost model
Prime cost = food + labor. If your labor runs 28%, you can afford 32% food cost and still hit 60% prime cost. If labor runs 35% (full-service), you need food cost below 25% — or accept a 60%+ prime cost that compresses profit.
Menu category mix
Beverage and dessert categories typically run 15–25% food cost. Proteins run 35–45%. A bar that derives 50% of revenue from beverages can run a much lower overall food cost % than a steakhouse. Mix matters as much as individual dish costs.
Your ideal food cost % is the highest food cost you can sustain while keeping prime cost under 60%. Here is the formula:
Ideal FC% = 60% − Your Labor Cost % Example: Your labor cost runs 30% of revenue Ideal food cost = 60% − 30% = 30% If labor = 28% → can afford 32% food cost If labor = 35% → must target 25% food cost
This is your prime cost ceiling. You can run higher food cost if you have unusually low rent, no debt service, or other below-average fixed costs — but 60% prime cost is the standard safety line.
Very low food cost can mean portion sizes are too small, ingredient quality is suffering, or menu prices are too high for your market.
Typical for QSR, fast food, or bar programs with strong beverage mix. Healthy if intentional.
Industry standard for most restaurant types. Strong profitability if labor is controlled.
Acceptable for fine dining or specialty protein concepts, but requires below-average labor cost. Monitor closely.
Unsustainable for most concepts. Indicates menu underpricing, uncontrolled waste, or over-purchasing. Immediate review needed.
Yes — 30% is generally considered a solid food cost for most full-service restaurants. Here is why:
On $100 of revenue: Food cost (30%): $30.00 Labor (30%): $30.00 Prime cost: $60.00 ← hits the 60% threshold Rent (7%): $7.00 Utilities (4%): $4.00 Other costs (6%): $6.00 Net profit (3%): $3.00 ← thin but viable
Notice that 30% food cost at 30% labor leaves almost no margin. This is why restaurants with typical labor models (28–32%) target food cost closer to 28–30%, not 33–35%.
What is the ideal food cost percentage for a restaurant?
28–35% for most restaurants. Fast food 25–28%. Fine dining up to 38%. The real benchmark is prime cost (food + labor) staying under 60% of revenue.
What is a good food cost percentage?
28–32% is considered good for most casual dining and fast casual restaurants. Below 25% is excellent but risks quality. Above 38% is a warning sign unless you are a high-end operation with high check averages.
Why does the ideal percentage vary between restaurants?
Average check size, labor model, and menu mix all determine what is sustainable. Fine dining can afford 33% food cost because check averages are high. Bars can run lower because beverages cost 15–20% to produce.
Is 30% food cost good?
Yes, generally. At 30% food cost and 30% labor, prime cost is 60% — right at the industry threshold. Profit depends on keeping rent, utilities, and other costs under 30% of revenue.
Enter your dish ingredients and see your actual food cost percentage — and whether you are hitting your ideal target.
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