Percy Plate is a web-based food cost calculator for food trucks, caterers, cottage food producers, and small restaurant owners. It lets you enter your ingredients and what you pay for them, build recipes, and instantly see the cost per serving and recommended sell price based on your target food cost percentage.

Yes. Percy Plate has a free plan that lets you create up to 10 ingredients and 5 recipes to calculate food cost. A paid subscription ($14.99/month or $119.99/year) unlocks unlimited ingredients and recipes plus inventory tracking, revenue reporting, menu engineering, Prime Cost, AI invoice scanning, FDA nutrition facts labels, FDA ingredient labels, and label printing.

How does Percy Plate calculate food cost?

You enter each ingredient, the unit you buy it in (lb, oz, gallon, etc.), and what you pay per unit. When you build a recipe, Percy Plate converts the recipe quantities to your purchase units, calculates the cost of each ingredient used, and divides by the number of servings to give you a cost per serving. It also shows the food cost percentage and a suggested sell price.

Can Percy Plate generate nutrition facts labels?

Yes. Percy Plate can look up nutrition data from the USDA FoodData Central database for each ingredient, then automatically calculate the per-serving nutrition for a recipe. It generates an FDA-format Nutrition Facts panel that can be printed directly to thermal labels (Brother, Dymo, Zebra) or Avery sheet labels in sizes 2x4 inch and 3.33x4 inch.

Can Percy Plate generate an ingredient list label?

Yes. Percy Plate generates an FDA-compliant ingredient label that lists ingredients by weight (heaviest first), automatically detects the top 9 FDA allergens, and includes your business name and net weight. Labels can be printed to thermal printers or Avery sheet labels.

What label printers work with Percy Plate?

Percy Plate supports thermal label printers including Brother QL series (DK-1202 2x4 inch labels), Dymo LabelWriter (30334 and similar), and Zebra desktop printers. It also supports Avery 5163 (2x4 inch) and Avery 5164 (3.33x4 inch) sheet labels for standard desktop printers.

Who is Percy Plate designed for?

Percy Plate is designed for small food business owners including food truck operators, cottage food producers, caterers, small restaurant owners, and anyone who sells homemade or prepared food and needs to track ingredient costs, price their menu, and produce product labels.

Does Percy Plate work on mobile?

Yes. Percy Plate is a web application that works on any device with a modern browser, including phones and tablets. You can look up ingredient costs, update recipe quantities, and check your food cost percentage from anywhere.

How do you calculate food cost percentage?

Food cost percentage = (ingredient cost per serving ÷ menu price) × 100. For example, if your ingredients cost $3.50 and you sell the dish for $12.00, your food cost percentage is 29.2%. Most food businesses target 28–35%. To set a price from a target, divide ingredient cost by your target: $3.50 ÷ 0.30 = $11.67 suggested price at 30% food cost.

What is a good food cost percentage for a small food business or bakery?

Most food businesses target a food cost percentage between 28% and 35%. Bakeries and cottage food producers often achieve lower food cost percentages (20–28%) because flour, sugar, and butter are inexpensive relative to retail prices. Full-service restaurants tend to run 30–35%. The right target depends on your labor costs, overhead, and pricing power in your market.

How do I calculate the cost per serving of a recipe?

Add up the ingredient cost for the full batch, then divide by the number of servings. For each ingredient, multiply the quantity used by the cost per unit (converting units as needed). For example: 8 oz flour at $0.89/lb = $0.89 ÷ 16 × 8 = $0.44. Sum all ingredient costs, then divide by servings. Percy Plate does this calculation automatically once you enter your ingredient prices and recipe quantities.

How does yield percentage affect recipe costing?

Yield percentage accounts for trim loss, cooking shrinkage, and waste. If you buy 1 lb of chicken but only 0.75 lb is usable after trimming, your yield is 75%. To get accurate food costs, divide the as-purchased cost by the yield percentage: $4.00/lb ÷ 0.75 = $5.33 per usable pound. Percy Plate lets you set a yield percentage (AP to EP) on any ingredient so your recipe costs reflect what you actually use.

What is the best recipe costing software for a small food business?

The best recipe costing software for a small food business depends on your needs. Percy Plate ($14.99/month) is built specifically for cottage food producers, food trucks, caterers, and small restaurants — it includes recipe costing, menu pricing, FDA ingredient labels, nutrition facts labels, inventory tracking, and revenue reporting. Competitors like meez start at $24/month and scale to $199/month. Square and Toast do not include recipe costing natively.

Is there free recipe costing software for home bakers or cottage food businesses?

Yes. Percy Plate has a free plan that includes recipe food cost calculation and menu pricing suggestions. The free plan lets you create up to 10 ingredients and 5 recipes. For unlimited recipes, FDA labels, nutrition facts, and inventory tracking, the paid plan is $14.99/month or $119.99/year. No credit card is required to start.

How do I price homemade baked goods to make a profit?

Start with your ingredient cost per batch, then divide by the number of units to get ingredient cost per item. Add packaging (boxes, bags, labels) as a per-unit cost. Then set a target food cost percentage — most cottage food bakers aim for 25–35% — and divide your total ingredient cost by that percentage to get a minimum price. For example: $0.85 ingredient cost per cookie ÷ 0.30 = $2.83 minimum price at 30% food cost. Factor in your time and overhead to ensure you are actually profitable, not just covering ingredients.

What are the labeling requirements for cottage food products?

Most states require cottage food labels to include: (1) the product name, (2) your name and home address, (3) a list of ingredients in descending order by weight, (4) a disclosure statement such as 'Made in a home kitchen not inspected by the state or local health department,' and (5) allergen declarations for any of the 9 major FDA allergens present. Some states also require net weight. Requirements vary by state — check your state's cottage food law for specifics. Nutrition Facts panels are generally not required for cottage food operations below a certain revenue threshold.

Do I need a nutrition facts label on my cottage food products?

Most cottage food producers are exempt from FDA Nutrition Facts label requirements under the small business exemption (fewer than 100 full-time employees and fewer than 100,000 units sold annually). However, you must still list ingredients in descending order by weight and declare all major allergens. Some states impose additional requirements. When in doubt, check your state's cottage food law and the FDA's small business labeling exemptions.

What allergens must I disclose on a homemade food label?

FDA requires disclosure of 9 major food allergens: milk, eggs, fish, shellfish, tree nuts, peanuts, wheat, soybeans, and sesame. These must be declared on all food labels, including cottage food products — even if a full Nutrition Facts panel is not required. The standard format is a 'Contains:' statement after the ingredient list, for example: 'Contains: Wheat, Eggs, Milk.' Percy Plate detects all 9 allergens automatically from your ingredient names.

How do I create a nutrition facts label for homemade food?

To create a Nutrition Facts label for homemade food: (1) look up the nutrition data for each ingredient using the USDA FoodData Central database, (2) calculate the per-serving amounts for calories, fat, carbohydrates, protein, sodium, and other nutrients, (3) format the panel according to FDA guidelines with serving size, servings per container, and daily value percentages. Percy Plate automates this — it looks up USDA nutrition data for your ingredients, calculates per-serving totals, and generates a print-ready FDA-format Nutrition Facts label for thermal or sheet labels.

How do I list ingredients in the correct order on a food label?

FDA regulations require ingredients to be listed in descending order by weight — the ingredient present in the greatest amount by weight must appear first. For example, if your muffin contains more flour than sugar, flour must be listed first. Sub-ingredients (like those in a chocolate chip) must be listed in parentheses immediately after the component. Percy Plate sorts ingredients automatically by weight when generating your label.

What information is required on a homemade food product label?

A complete homemade food label generally requires: (1) the name of the food, (2) the net quantity (weight or count), (3) an ingredient list in descending order by weight, (4) allergen declarations for all 9 major FDA allergens, (5) your business name and address, and (6) for cottage food specifically, a state-required disclosure statement such as 'Made in a home kitchen not inspected by the state health department.' Nutrition Facts panels are usually optional for small cottage food producers below certain revenue thresholds.

By Heidi Macomber · July 10, 2026 (updated August 15, 2026)

Restaurant Prime Cost Explained: The Number That Predicts Survival

Prime cost is the single most important number in the restaurant industry. It tells you whether your business model actually works. Here is what it is, how to calculate it, and what target you should aim for.

What Is Prime Cost?

Prime cost is the sum of your total cost of goods sold (COGS) and your total labor cost. It measures everything that goes into producing the food and drink you sell.

Prime Cost = Total COGS + Total Labor Cost

COGS includes food, beverage, and packaging costs. Labor cost includes wages, salaries, payroll taxes, and benefits for every employee -- line cooks, servers, dishwashers, managers, and owners who work in the business.

Labor cost is the part most operators get wrong. It is not just hourly wages. Add payroll taxes (FICA, FUTA, SUTA), workers' compensation, health insurance contributions, paid time off, and any bonuses or tips you report.

Why Prime Cost Matters More Than Food Cost Alone

Food cost percentage gets all the attention, but it only tells half the story. A restaurant with 25% food cost sounds great -- until you realize they are spending 42% on labor because they are overstaffed.

Prime cost captures both sides of the equation. It is the truest measure of operational efficiency.

If your prime cost is too high, no amount of marketing or menu redesign will save you. The math does not work.

What Is a Good Prime Cost?

Industry benchmarks vary by concept:

Concept	Prime Cost Target
Full-service restaurant	60-65%
Fast casual	55-60%
Food truck	55-60%
Bakery / cottage food	50-55%
Coffee shop	50-55%

The old industry standard was 60-65% for full-service. In recent years, rising food costs and labor costs have pushed many operators to accept 65-68%. Anything above 70% means the business is likely losing money or barely breaking even.

How to Calculate Prime Cost (Step by Step)

Step 1: Calculate Total COGS

COGS = Beginning Inventory + Purchases - Ending Inventory

Count your physical inventory at the start and end of the period (usually a week or month). Add everything you purchased during the period. Subtract the ending inventory.

Include food, beverage, alcohol, napkins, to-go containers, and any packaging the customer takes with them.

Step 2: Calculate Total Labor Cost

Add up all labor-related expenses for the same period:

Hourly wages for all employees
Salaried employee pay (including owner-operators who work shifts)
Payroll taxes (employer portion of FICA, FUTA, SUTA)
Workers' compensation insurance
Health insurance contributions
Retirement plan contributions
Paid time off accrued

Do not include yourself if you are purely an owner-investor who does not work in the restaurant. Do include yourself if you cook, serve, manage, or work the counter.

Step 3: Calculate Prime Cost Percentage

Prime Cost % = (Total COGS + Total Labor) / Total Sales x 100

Example

A food truck does $18,000 in sales for the week.

COGS: $5,400 (30%) Labor: $5,220 (29%) -- two employees plus owner who works 40 hours Total: $10,620

Prime Cost % = $10,620 / $18,000 = 59%

That is within the healthy range for a food truck. There is room to tighten, but the business model works.

The Three Warning Signs Your Prime Cost Is Too High

Your food cost is fine but labor is above 35%. You are overstaffed, paying too much per hour, or scheduling inefficiently.
Your labor is fine but food cost is above 35%. Your menu prices are too low, your portion sizes are too large, or you are not accounting for waste.
Both are in range but sales are declining. Your prime cost percentage will rise automatically because fixed labor costs do not shrink as fast as revenue.

How to Lower Prime Cost Without Cutting Quality

On the COGS side:

Track ingredient prices over time. When a supplier raises prices, you need to know immediately, not at the end of the month.
Calculate actual vs. theoretical food cost. Theoretical is what the recipe says a dish should cost. Actual is what it really costs after waste, over-portioning, and theft. The gap is money you are losing.
Re-engineer your menu. Move high-margin items to the most visible positions. Remove items that are expensive to make but do not sell well.

On the labor side:

Schedule based on sales forecast, not habit. If Tuesday lunch does half the volume of Friday dinner, your staffing should reflect that.
Cross-train employees so you can run leaner during slow periods.
Track labor as a percentage of sales daily, not just weekly. You cannot fix a bad Tuesday on Friday.

The Tool Problem

Most independent restaurants calculate prime cost once a month, if at all. They hand-count inventory, add up receipts, and produce a number that is already weeks old by the time they see it.

Enterprise restaurant groups use inventory management software that costs $300-$500 per month. It gives them daily prime cost tracking, automatic price updates, and variance alerts.

Percy Plate was built to close that gap. For $14.99/month, you get ingredient price tracking, recipe costing, inventory counts with variance reports, and revenue tracking that lets you calculate prime cost weekly in minutes instead of hours.

Calculate your prime cost with Percy Plate

Prime Cost Is a Habit, Not a One-Time Calculation

The most profitable restaurants do not have lower food costs or cheaper labor than you. They have better information and they act on it faster.

Calculate your prime cost every week. Track the trend. When it spikes, investigate immediately. When it drops, figure out what you did right and repeat it.

The number itself is not magic. The discipline of knowing it is.

Related Guides

Labor Cost Percentage: How to Schedule Staff Without Wrecking Your Margins — Labor cost percentage and scheduling
Restaurant Percentages: Every Ratio Owners Must Track — All restaurant ratios in one guide
Food Cost vs. Total Cost: What's the Difference? — Food cost vs total cost framework
Tip Credit by State: The Complete Owner's Math — Tipped cash wages, the make-up rule, and the overtime trap, state by state

Stop guessing what your dishes cost.

Percy Plate calculates recipe costs, menu prices, and FDA-compliant labels for food businesses. Free to start.

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