How To Calculate Food Cost Percent

In this video we’re going to cover how to calculate the Food Cost Percentage To begin we’re going to look at the Food Cost Percentage formula. The formula for Food Cost Percentage Food Cost divided by Food Sales Multiplied by 100. In this example we’re going to try to calculate the Food Cost Percentage for a cheeseburger. Let’s assume that the cheeseburger costs $1.20 to produce. Now that includes the entire cost of producing that cheeseburger. including all of the ingredients Let’s also assume they were going to sell the cheeseburger for $5.00 To calculate the Food Cost Percentage we’re going to divide $1.20 which is a Food Costs by the Food Sales or the selling price which is $5.00. That is going to give us 0.24, which we’ll then multiply by 100 to convert it into a percentage. Our Food Cost Percentage is going to be 24%. What this basically indicates is that 24% of the selling price will be allocated to the food cost For videos such as this and more please subscribe to our YouTube channel.

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