Many guides cite as a general benchmark the range 28–35%. But there is no perfect percentage for everyone. Everything depends on the rest of the business costs, as well as the type of restaurant.
So the right question is not only:
Is my food cost below 35%?
The more useful question is:
With this food cost, this selling price, and the other expenses, does the business make enough profit margin?
Why the “ideal” 30–32% is not a rule
A steakhouse can have a higher food cost than a pasta concept and still be healthy. A restaurant where the building is owned and the owner produces a large share of the raw materials has plenty of room to lower prices — thereby raising the food cost percentage to compete — and still have healthy profitability.
So the ideal food cost %, while traditionally considered close to 30–32%, is not necessarily a rule, because many factors affect the choice of selling price.
What to look at before you “lock in” a target
- Rent / owning the space
- Labour cost (as % of sales)
- Type of concept (fine dining, QSR, café, catering)
- Whether you prep in-house or buy in
- Delivery commissions and net revenue
- Menu mix — what actually sells
For how to measure the percentage correctly at dish and period level, see Food Cost: Formula & Examples.
If your percentage is rising without the concept changing, read Why Food Cost % Goes Up — and How to Lower It.
And to see whether the period number “tells the truth”, compare theoretical and actual food cost.