What is a healthy food cost percentage?
Reviewed by Editorial Team
Food cost percentage equals cost of goods sold divided by food sales. It is the single most predictive number for whether a food truck stays open. The 28-35% benchmark range comes from decades of restaurant industry data. Food trucks usually run 30-33% because portion control is easier on a tight menu but ingredient deliveries are smaller and per-unit pricier. What pushes it above target: over-portioning, waste, theft, supplier price hikes, menu mix shift. What pushes it below 25%: usually cutting portions too aggressively, which shows up in reviews. A 22% food cost with declining sales is worse than 32% with growing demand. Track weekly, not monthly. Audit recipe costs every quarter; beef, eggs, oils, and dairy move fastest.
Common mistakes
- Calculating once a month and missing a runaway week.
- Cutting portions instead of repricing — customers notice immediately.
- Not separating retail and catering food cost; catering should run lower.
Related FAQs
How do I price my menu?
Calculate plate cost (raw ingredients per serving), divide by your target food cost percentage (28-35% per FSR Magazine benchmarks), and round to a clean price point. Test against competitor menus in the same daypart. Reprice every quarter as ingredient costs move.
How do I track inventory?
Count physical inventory weekly using a spreadsheet or POS-integrated app (MarketMan, MarginEdge, or Square for Restaurants), match against invoices to calculate weekly food cost percentage, and investigate any variance over 2-3% from target. Daily prep sheets prevent over-prep and waste.
How much should I budget for first-year operating losses?
Plan for 3-6 months of operating losses while you build a customer base, refine the menu, and lock in catering pipeline. A working reserve of 3 months of fixed costs — typically $15,000-$30,000 for a small operation — keeps you from making panic decisions in month two.