Food Cost Percentage
Food Cost Percentage is a key measurement used in restaurants to track how much money is spent on ingredients compared to the revenue made from selling menu items. It helps restaurant managers make sure they're pricing their dishes correctly and not losing money on food. For example, if a restaurant spends $3,000 on ingredients and makes $10,000 in food sales, their food cost percentage would be 30%. Most restaurants aim to keep this number between 28-35%. This is similar to other business terms like 'cost of goods sold' or 'ingredient cost ratio.'
Examples in Resumes
Reduced Food Cost Percentage from 35% to 28% through menu engineering and vendor negotiation
Maintained Food Cost % below 30% while ensuring high quality ingredients
Trained kitchen staff on proper portioning to achieve target Food Cost Percentage
Typical job title: "Restaurant Managers"
Also try searching for:
Where to Find Restaurant Managers
Online Communities
Professional Associations
Example Interview Questions
Senior Level Questions
Q: How would you handle a situation where food costs are consistently running above target?
Expected Answer: A senior manager should discuss menu analysis, portion control, vendor negotiation, inventory management, and staff training strategies. They should also mention implementing waste tracking systems and regular cost monitoring procedures.
Q: How do you balance food quality with cost control?
Expected Answer: Should explain strategies for maintaining quality while managing costs, such as seasonal menu planning, building relationships with suppliers, and smart menu pricing strategies.
Mid Level Questions
Q: How do you calculate food cost percentage?
Expected Answer: Should explain that it's (Cost of Ingredients / Food Sales) x 100, and demonstrate understanding of inventory tracking and sales reporting.
Q: What systems do you use to track inventory and food costs?
Expected Answer: Should discuss experience with inventory management systems, regular stock takes, and basic cost tracking procedures.
Junior Level Questions
Q: What is an acceptable food cost percentage range?
Expected Answer: Should know that typical restaurants aim for 28-35%, and understand this can vary by restaurant type and menu style.
Q: How do you prevent food waste in a kitchen?
Expected Answer: Should discuss basic portion control, proper storage techniques, and following recipes consistently.
Experience Level Indicators
Junior (0-2 years)
- Basic food cost calculations
- Inventory counting
- Recipe costing
- Basic waste management
Mid (2-5 years)
- Menu engineering
- Vendor management
- Staff training
- Inventory management systems
Senior (5+ years)
- Strategic menu pricing
- Cost optimization strategies
- Financial analysis
- Multi-unit cost management
Red Flags to Watch For
- Unable to explain basic food cost calculations
- No experience with inventory management
- Lack of knowledge about industry standard percentages
- No understanding of portion control importance
Related Terms
Need more hiring wisdom? Check these out...
Cutting HR Costs Without Sacrificing Quality: A How-To for Savvy Executives
The Hidden Art of Salary Negotiation: How to Win Hearts Without Going Broke
Recruitment Metrics That Matter in 2025: Moving Beyond Time-to-Hire
