By Heidi Macomber · June 7, 2026 (updated July 31, 2026)
What’s a Good Food Cost Percentage for My Business?
- You’ve figured out your ingredient costs, but is your food cost percentage where it should be? To check, divide your total ingredient cost by your sales price, then multiply by 100. For example, if a dish costs $2 to make and you sell it for $8, your food cost percentage is 25 percent.[1]*
Food cost percentage is important in the food industry, but what counts as 'good' really depends on your business type. A coffee trailer’s sweet spot can look nothing like a food truck’s, and bakeries, juice bars, and caterers each play by their own rules. Bakeries and dessert shops might splurge on specialty ingredients, while juice bars pour their budgets into fresh produce. To price with confidence, start by discovering where your business fits in this mix.
The General Benchmark
Most experts say a healthy food cost percentage falls between 28% and 35%. This range typically covers labor and overhead, leaving room for profit. But think of this as just a jumping-off point. Your perfect percentage can shift dramatically based on your business model. If you’re juggling high rent, seasonal swings, or other hurdles, you may need to tweak your target. Take a close look at all your costs and set a benchmark that truly fits your unique situation.
| Business Type | Typical Food Cost % |
|---|---|
| Coffee / espresso drinks | 18-25% |
| Café (food + drinks) | 28-35% |
| Food truck | 28-38% |
| Full-service restaurant | 28-35% |
| Bakery (retail) | 25-35% |
| Catering | 25-40% |
Why Coffee Businesses Run Leaner
Coffee and espresso drinks usually have some of the lowest food cost percentages, often between 18% and 25%.[2] This is because the main ingredients like espresso, milk, and syrups are inexpensive compared to the selling price. For example, a $6 oat milk latte might only cost $1.10 to $1.40 to make.[3] These strong margins help coffee businesses thrive, especially for mobile operators who incur additional costs such as trailers, commissary fees, and event permits.
The real challenge arises when you add pastries, sandwiches, or breakfast items but forget to recalculate your overall food cost. Suddenly, that croissant from a local bakery could send your food cost for that item soaring above 40 percent, dragging down your average and squeezing your margins. If your menu mixes high- and low-margin items, keep a close eye on how each one shapes your profits. You can strike a balance by raising prices on pricier items, spotlighting your most profitable picks, or pairing lower-margin foods with high-margin drinks. Regularly reviewing your sales data and food costs helps you make smarter choices and maintain strong margins. Aim to review your food costs at least monthly, or quarterly if that suits you better. Sticking to a routine makes it easier to spot trends early and avoid trouble.
Food Trucks and Restaurants: More Ingredients, More Complexity
Food trucks and restaurants typically see food costs ranging from 28% to 38%. Protein-packed dishes like burgers, meat-filled tacos, or seafood can easily nudge your costs to the top of that range or beyond. The trick is to pinpoint which menu items are driving up your average and decide if they’re popular or priced high enough to justify their spot.
For food trucks, with their smaller menus and slimmer margins, just a few mispriced items can take a real bite out of your profits. By tracking the food cost for each menu item, not just your overall average, you can make sharper, more profitable decisions.
Setting Your Own Target
Instead of chasing the industry average, begin with your own numbers. Figure out what you need to cover--fixed costs, labor, and a fair profit. This will reveal the highest food cost percentage your business can handle and help you set a pricing goal that truly fits you.
If your food cost percentage is running higher than your target, start by reviewing your menu prices to see if they need a boost. Take a hard look at your ingredient costs and think about negotiating with suppliers or scouting out new vendors. When you chat with suppliers, ask about bulk discounts or price matching. Going over your order history together could uncover products to buy in larger quantities for a better deal or reveal seasonal specials. Building a strong relationship with your supplier can open the door to special promotions or better payment terms. You can also tweak portion sizes, cut down on waste, or refresh your menu to spotlight more profitable items and get your numbers back in line.
- Know your numbers before you set your prices.*
With Percy Plate, you simply enter your target food cost percentage and get a suggested selling price for any recipe right away. Percy Plate works for simple menus like espresso drinks and for more complex dishes with many ingredients or custom options. It’s designed to help both new and experienced businesses, so you get clear and accurate numbers whether you’re just starting out or improving your menu. Whether you run a coffee trailer or a full-menu food truck, Percy Plate helps you keep track of your costs as ingredient prices change.
Learn more at percyplate.com.
Sources
[1] 5 Restaurant Experts Dish on Menu Pricing Strategy, 2025.
[2] Food cost percentage for cafes: targets, benchmarks, and tips, 2026.
[3] Restaurant Food Cost Percentage 2026: Typical 28-35%, 2026.
Related Guides
- How to Calculate Food Cost Percentage: A Complete Guide for Restaurants — How to calculate food cost percentage
- Restaurant Food Cost Percentage Benchmarks for 2026 — 2026 benchmarks by concept type
- Food Truck Food Cost Percentage Benchmark: What Should Yours Be? — Food truck specific benchmarks
- Food Cost vs. Total Cost: What's the Difference? — Food cost vs total cost context
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