What food cost percentage should I target?

Most cafes and bakeries target 30 to 35% food cost. That means the ingredients make up 30 to 35% of the selling price. The rest covers labour, overheads and profit.

What is the difference between food cost and gross profit?

Food cost is the ingredient cost as a percentage of the selling price. Gross profit is the remaining percentage. A 30% food cost means a 70% gross profit margin.

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Menu Pricing and Food Cost Calculator

Calculate the true cost of a menu item and suggest a selling price based on your target food cost or gross profit percentage.

Price your menu items with confidence. Add your ingredients, set your target food cost percentage or gross profit percentage, and we will calculate the cost per item and suggest a selling price.

Shows prices both including and excluding GST.

Rates last reviewed: 1 September 2026. Estimates only. Talk to us before making decisions based on these numbers.

Ingredients

Yield (portions)

Target

Target percentage

Results

Total ingredient cost$2.28

Cost per item (12 portions)$0.19

Suggested price (excl. GST)$0.63

Suggested price (incl. GST)$0.73

Actual food cost30.0%

Actual gross profit70.0%

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Menu Pricing and Food Cost Calculator

Ingredients

Results

Questions

What food cost percentage should I target?

What is the difference between food cost and gross profit?