How to Use Food Cost Percentage Formula in Excel: 3 Methods

Written by Mehedi Hasan

Last updated: Jul 5, 2024

Method 1 – Calculating Total Food Cost Percentage Formula for Cost per Meal

Steps:

Select cell C8.
Write the following formula into the formula bar and press Enter.

=C5+C6-C7

Enter the following formula in cell C12.

=C8/C10

Press the Enter key to get the total food cost percentage.

Interpretation of the Result

The output indicates that 43% of the restaurant’s total revenue is eaten by the customers as their meals.

Method 2 – Calculating Actual Food Cost Percentage per Dish

Steps:

Select cell C10.
Write down the following formula and press the Enter

=SUM(C5:C9)

We used the SUM Function.

Write the following formula in cell C14.

=C10/C12

Hit the Enter key in order to receive the actual food cost percentage per dish.

Interpretation of the Result

The final result shows the cost of a dish and its profitability. It is marked as 37%.

Method 3 – Calculating Ideal Food Cost Percentage

Steps:

Select cell C7.
Enter the formula below.

=C5/C6

Hit the Enter button in order to find the ideal food cost percentage.

Interpretation of the Result

The final output represents 32% of the total sales of food used for total food cost.

Things to Remember

First of all, select Currency as the Number format of the Value column.
You can change the format style from the Format Cellsdialog box.
Lastly, keep the Number format as Percentage where you want the final Food Cost Percentage.

Download Practice Workbook

You can download the workbook used for the demonstration from the download link below.

Food Cost Percentage Formula.xlsx

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Mehedi Hasan

Mehedi Hasan, a BSc graduate in Naval Architecture & Engineering from Bangladesh University of Engineering and Technology, plays a pivotal role as an Excel & VBA Content Developer at ExcelDemy. Fueled by a profound passion for research and innovation, he actively engages with Excel. In his capacity, Mehedi not only adeptly tackles intricate challenges but also showcases enthusiasm and expertise in navigating tough situations with finesse, underscoring his unwavering dedication to consistently delivering exceptional and high-quality content. He... Read Full Bio

2 Comments

Reply
NISHANTH VJ Apr 6, 2023 at 6:00 PM

how can the cost even in different form every time I checked into it
- Reply
  Yousuf Khan Apr 10, 2023 at 3:23 AM
  
  Hello NISHANTH VJ,
  
  Thank you for your concern. Though I am afraid I am having trouble understanding the query clearly. Assuming you wish to modify the formula to account for the cost even in different forms every time you check in, you can use the weighted average cost of goods sold (COGS) method. This method calculates the average cost of all goods sold during a period, taking into account the varying costs of different ingredients.
  
  The formula:
  
  Food Cost Percentage = (Total Cost of Goods Sold ÷ Total Revenue) x 100
  
  To calculate the total cost of goods sold, you can use the following formula:
  
  Total Cost of Goods Sold = (Beginning Inventory + Purchases - Ending Inventory) x Weighted Average Cost per Unit
  
  To calculate the weighted average cost per unit, you can use the following formula:
  
  Weighted Average Cost per Unit = Total Cost of Goods Available for Sale ÷ Total Units Available for Sale
  
  By using this modified formula, you can account for the fluctuations in the cost of food and beverage and calculate your food cost percentage accurately, even if the cost of ingredients varies over time.
  
  Regards,
  Yousuf Khan Shovon

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