Food Cost Percentage by Type of Food Business
Food cost is conventionally quoted at 28–35% of sales for restaurants generally, with pizzerias and quick-service typically at the lower end and steak or seafood concepts higher. Coffee shops are quoted at 25–35% for cost of goods. These are conventions that circulate widely in the trade rather than measured survey results, and for several formats, including bakeries, food trucks and catering, no credible published benchmark exists at all.
Figures verified July 2026
| Format | Quoted range |
|---|---|
| Restaurants, general range | 28–35% |
| Coffee shop (cost of goods) | 25–35% |
| Pizzeria | Typically at or below the general range |
| Bakery | Ingredients run well below; track shrink instead |
| Catering | Cost per head, not a percentage of sales |
| Food truck | No published benchmark exists |
Menu mix moves this more than purchasing does
Two kitchens buying equally well can post food costs six points apart because one sells steak and the other sells pasta. Before you go after suppliers or portion sizes, re-cost your ten best-selling dishes; that’s where a single point is worth the most, and the problem is frequently a price that hasn’t moved in two years rather than anything happening in the kitchen.
What these ranges actually are
The National Restaurant Association publishes labour figures from a survey with a stated methodology. Nothing equivalent exists for food cost by concept. The 28–35% band is a convention repeated across the trade, useful as a sense check and not much more, which is why we show it with its source and its limits rather than presenting it as a measured average.
Formats where the number means something different
A bakery can run 20% ingredient cost and still lose money if a fifth of production goes in the bin, because shrink doesn’t appear in the food cost line. Catering is costed per head against a known guest count, so a percentage of sales is close to meaningless. Delivery-led kitchens carry platform commission that lands before food cost is even calculated. In each case the standard number describes the wrong thing.
Watch prime cost instead
Food and labour trade against each other: buy prepped product and food cost rises while kitchen hours fall. Looking at either in isolation produces bad decisions, which is why the combined figure is the one operators actually manage against. Sixty-five percent is the usual ceiling quoted for full service, sixty for quick service.
Every figure with its source
| Figure | Value | Source |
|---|---|---|
| Restaurants, general range1 | 28–35% | WhippleWood CPAs2026 |
| Coffee shop cost of goods2 | 25–35% | Barista LifeAccessed July 2026 |
| Prime cost ceiling, full service3 | 65% | The Fork CPAsAccessed July 2026 |
| Prime cost ceiling, quick service4 | 60% | The Fork CPAsAccessed July 2026 |
1 Convention rather than measurement.
2 Commonly cited. Not a surveyed figure.
3 Commonly quoted guideline.
4 Commonly quoted guideline.
For the same numbers organised by type of business, see the cost benchmarks by food business, and for what staff cost where you trade, see labour costs by region. If you run a table-service site, a digital waitlist for restaurants is the operational side of the throughput problem these figures keep pointing at.
Run your own numbers
Frequently asked questions
What is a good food cost percentage?
28–35% of sales is the range quoted for restaurants generally, with quick service and pizza lower and premium proteins higher. It’s a convention rather than a measured average, so treat it as orientation.
Why does food cost vary so much between restaurants?
Menu mix, mostly. What you sell moves the number far more than how well you buy, which is why re-costing your best sellers beats renegotiating with suppliers as a first step.
Is a 40% food cost too high?
Not necessarily. A steakhouse can run well above the general range and be profitable if labour is controlled and prices are right. Prime cost tells you whether it’s a problem.
How do I lower my food cost percentage?
Re-cost top sellers, tighten portioning where it won’t be noticed, cut waste and over-ordering, and raise prices on items whose cost has climbed since you last looked. The last one is the most commonly avoided and often the most effective.
Related
- Labour Cost Percentage by Type of RestaurantWhere each format sits, and why the gaps between them are structural.
- Prime Cost: What It Is and What Yours Should BeFood plus labour, and the one ratio worth managing against.
- Food Business Cost Benchmarks: Every Figure, With SourcesEverything on one page, each figure attributed and dated.
Sources
- Barista Life — Coffee Shop Labor Cost PercentageAccessed July 2026 · Trade press — cited convention, not measured data
- The Fork CPAs — The Ideal Labor Cost for a Restaurant or BarAccessed July 2026 · Trade press — cited convention, not measured data
- WhippleWood CPAs — Restaurant Financial Benchmarks 20262026 · Trade press — cited convention, not measured data