Methodology & sources

Food cost %

food_cost_percent = food_cost / revenue

Industry guidance places target food cost between 28–32% for most full-service operations, with limited-service often running 25–30%. Above 35% sustained typically signals pricing, purchasing, waste, or theft issues. Source: National Restaurant Association — restaurant operations guidance.

Menu price

menu_price = recipe_cost / target_food_cost_percent

The plate-cost method assumes recipe cost is the sum of all ingredient costs at the portion size sold. Charm rounding (e.g., $7.95 instead of $7.83) is a display convention, not a math change. Source: ServSafe Manager textbook; standard menu costing practice.

Prime cost

prime_cost = food_cost + beverage_cost + labor_cost
prime_cost_percent = prime_cost / revenue

Labor cost is fully loaded: wages + payroll taxes + benefits + workers' comp + paid time off. Industry rule of thumb: ≤ 60% prime cost is healthy for full-service; limited-service can target ≤ 60–65%. Source: National Restaurant Association.

Recipe cost

total = sum(quantity_i × unit_cost_i)
cost_per_serving = total / servings

Unit consistency is the operator's responsibility — if quantity is in grams, unit cost must be $/gram. The calculator does not convert units. Source: ServSafe Manager textbook; standard plate-costing methodology.

Labor cost %

labor_cost_percent = labor_cost / revenue

Includes all wages, salaries, payroll taxes, benefits, and paid time off over the same period as revenue. Industry rule of thumb: 25–35% for full-service, 20–25% for limited-service. Source: U.S. Bureau of Labor Statistics + National Restaurant Association.

Update policy

• If a primary source updates its industry-band guidance, this page is updated within 30 days.
• Each calculator carries its own "Last reviewed" date.
• Reported errors are fixed and the change is logged in the public decision log.