What is the typical range for food cost percentage in a restaurant?

The typical range for food cost percentage in a restaurant is indeed between 28% and 35%. This percentage reflects the proportion of a restaurant’s total sales that goes toward purchasing food ingredients. Maintaining food costs within this range is generally seen as a healthy standard for restaurant operations. It allows for sustainable profitability while ensuring that the quality of food can be upheld without compromising the financial viability of the business.

This range takes into account various factors, including the type of establishment, the pricing strategy, and the competition in the market. For most full-service restaurants, staying within this range suggests that the business is effectively managing its inventory and pricing. A food cost percentage below this range may indicate that a restaurant is not investing enough in quality ingredients or could lead to issues with food quality and customer satisfaction. Conversely, a percentage that significantly exceeds this range could indicate inefficiencies in the kitchen or pricing misalignments, risking the overall financial health of the restaurant.