How it is calculated
Food cost percentage
Cost per portion (ingredients plus packaging) divided by the selling price, times 100. A ₹107 portion sold at ₹320 is 33.4 percent.
Price for a target
Cost per portion divided by the target percentage. For a 32 percent target and a ₹107 portion, the price is ₹334, which you would round to ₹339 or ₹349.
Whole kitchen
Food and packaging purchases for the month divided by food sales before GST. If you track stock, use opening stock plus purchases minus closing stock instead of purchases alone.
Frequently asked questions
What is a good food cost percentage for a restaurant in India?
Most kitchens aim for 28 to 35 percent. Delivery-heavy menus sit higher because packaging counts, premium dine-in menus can sit lower. The right number depends on your rent and labour: a kitchen with low fixed costs can live with a higher food cost.
Should packaging be part of food cost?
For delivery and takeaway, yes, because it is spent on every order and scales with volume. Keep it as a separate line so you can see when a packaging change moves the percentage.
How often should I recalculate?
Re-cost your top ten dishes every month, since vegetable, oil and dairy prices move. Recalculate the kitchen-wide figure monthly from purchases and sales.