How to Control Food Costs and Boost Your Restaurant’s Profit

Running a restaurant means keeping a close eye on your costs—and one of the biggest expenses is food costs. If you're not tracking and managing food costs properly, your profits can disappear fast. In this article, we’ll explain what food cost is, why it matters, and how you can control it to increase your margins.

What Is Food Cost?

Food cost is the percentage of your revenue that goes toward buying ingredients. It’s usually calculated like this:

Food Cost % = (Cost of Ingredients Used ÷ Food Sales) × 100

For example, if you spend $3,000 on ingredients and your food sales are $10,000, your food cost is 30%. Most restaurants aim to keep food costs below 30%—and for some, the target is even lower, depending on their concept and pricing.

Why It’s Important to Track and Control Food Cost

When food costs get too high, your profit margins shrink. If you don’t catch it in time, you might be making great sales but still losing money. By tracking food costs in real time, you can quickly spot when things are going off track and take action before it becomes a bigger problem.

Ways to Control Food Costs

1. Track Food Costs in Real Time

Don’t wait until the end of the month to see how you’re doing. Use software like ours that gives you real-time insights, so you can act fast when costs start to creep up.

2. Negotiate with Suppliers

Prices can vary a lot between suppliers. Review your vendor pricing regularly and don’t hesitate to negotiate or shop around for better deals.

3. Tweak Recipes

If a dish is costing too much to make, you might be able to adjust the portion size or swap out expensive ingredients without affecting quality. Small changes can make a big difference over time.

4. Reduce Waste

Wasted food is wasted money. Make sure your staff is trained on proper storage, prep, and portioning. Track what’s being thrown out and why—it’ll help you find patterns and fix the problem.

5. Use Inventory Management Tools

Manually tracking inventory can be time-consuming and prone to error. Automated tools like ours can help you monitor what’s on hand, what’s been used, and what needs to be ordered—so you’re always in control.

How cactus can help in managing food costs

Controlling food costs isn’t just about cutting corners—it’s about running a smarter, more efficient kitchen. With cactus, you can lower your food costs and grow your profits without sacrificing quality. Try cactus free for 30 days and track your margins in real-time!, and take control of your restaurant’s bottom line!

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DISCLAIMER: This information is provided for general informational purposes only, and publication does not constitute an endorsement. Cactus does not warrant the accuracy or completeness of any information, text, graphics, links, or other items contained within this content. Cactus does not guarantee you will achieve any specific results if you follow any advice herein. It may be advisable for you to consult with a professional such as a lawyer, accountant, or business advisor for advice specific to your situation.