# what is food cost formula

Food Cost Formula.Food cost is an important factor in the catering industry.

Published on 01/01/2023Sébastien Vassaux
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## Food Cost Formula

Food cost is an important factor in the catering industry. It is the total cost of the ingredients used to make a dish or menu item. To accurately calculate food cost, you need to use a food cost formula.

## How to Calculate Food Cost

• Step 1: Calculate the cost of all ingredients used in the dish.
• Step 2: Add up the cost of all ingredients.
• Step 3: Divide the total cost of ingredients by the number of servings.
• Step 4: Multiply the result by 100 to get the food cost percentage.

## Food Cost Formula

The food cost formula is: Total Cost of Ingredients / Number of Servings x 100 = Food Cost Percentage

## Example

For example, if the total cost of ingredients for a dish is \$20 and it serves 4 people, the food cost percentage would be: \$20 / 4 x 100 = 50%

## Conclusion

Calculating food cost is an important part of running a successful catering business. By using the food cost formula, you can accurately calculate the cost of ingredients for each dish and ensure that you are making a profit.

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