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Food cost percentage is calculated by dividing the total ingredient costs by the selling price excluding VAT, then multiplying by 100. For example, if a dish costs €10.50 in ingredients and sells for €29.36 (excluding VAT), the food cost is (€10.50 / €29.36) × 100 = 35.8%.

A good food cost percentage typically ranges between 28% and 35%, depending on the restaurant concept. Fine dining and casual dining aim for 28-35%, bistros/brasseries for 25-32%, and pizzerias for 20-28%. Consistently exceeding 35% may indicate a loss on that dish.

No, always calculate food cost using the selling price excluding VAT. Your menu price includes VAT, so divide by 1.09 (for 9% VAT) to get the correct base price for calculations.

If your food cost exceeds 35%, you may be losing money on that dish. Consider reducing portion sizes, sourcing cheaper ingredients, or raising the menu price to improve profitability.

Ingredient prices fluctuate seasonally, especially for produce and seafood. Update your calculations monthly during peak season changes to ensure your food costs remain accurate.

Include all ingredients that touch the plate, such as main ingredients (meat, fish, vegetables), garnishes, sauces, oil, butter, herbs, and decoration. Even small items like herbs and garnish should be accounted for.