Apicbase Glossary

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food and beverage industry glossary

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Food cost percentage

Food Cost Percentage is the ratio of ingredients and the revenue those ingredients generate when sold, expressed as a percentage. 

A profitable restaurant’s Food Cost Percentage on average is anywhere between 28 and 35% of revenue.

To calculate the Food Cost Percentage of your restaurant, you need to divide your actual food cost (the value by which your stock decreases over a given period) by your revenue for that same period. 

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