Food Cost Percentage
The share of revenue spent on the ingredients in what you sell.
Food cost percentage is the cost of ingredients divided by the menu price, expressed as a percent — a $4 plate sold for $16 runs a 25% food cost. It's a core lever for profitability and menu pricing. Opero's recipe costing ties ingredient costs to each menu item, so as supplier prices shift, owners can see which dishes are drifting and re-engineer the menu accordingly.
Related terms
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