If you determine that your ideal food cost should be 30%, then you have thirty cents of every dollar to purchase and prepare the ingredients for that menu item. This doesn’t mean every item on your menu should have a 30% food cost. When pricing high-cost menu items like steaks and seafood, you may end up with a high food cost but you also have a very high gross profit margin. Whereas, low-cost items like pasta, have a lower food cost and a lower gross profit.
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