Restaurant Food Cost Control: A Practical Guide (2026)
How to measure and control food cost with recipe costing, portion control and wastage tracking — the difference between a busy restaurant and a profitable one.
A restaurant can be full every night and still lose money if food cost is out of control. Controlling it is about knowing the true cost of every dish and stopping leakage. Here is the playbook.
Know your food cost percentage
Food cost % = cost of ingredients ÷ menu price. Track it per dish and overall; if it drifts above your target, your margin is quietly bleeding.
Cost every recipe
A recipe/BOM breaks each dish into ingredient quantities and costs, so you see real margin and can re-price or re-engineer accordingly. MyGroce supports recipe and ingredient costing.
Stop the leaks
- Enforce portion control so plates are consistent
- Track ingredient stock and wastage
- Buy to reorder points to avoid spoilage
- Reconcile stock against sales to catch theft
Frequently asked questions
What is a good food cost percentage?
It varies by cuisine and format, but many restaurants target roughly a third of menu price. Track it per dish with recipe costing so you can act before margin slips.
Keep reading
- Restaurant POS for small business
- Inventory software for small business
- How to grow your restaurant or cloud kitchen
Ready to grow? MyGroce gives Indian businesses GST billing, inventory, HRMS & payroll, an online store and more on one login — free to start, no hardware. Start free today or see pricing.