Food Cost Percentage(FCP)
Definition
The ratio of food costs to food sales revenue, expressed as a percentage. Calculated as (Cost of Goods Sold / Food Sales) × 100.
In Detail
Most full-service restaurants target a food cost percentage between 28-35%, while quick-service restaurants may target 25-30%. High food cost percentages can indicate waste, theft, over-portioning, or inefficient purchasing. Tracking this metric weekly helps identify trends before they impact profitability.