We all know that keeping food costs in check is one of the biggest keys to running a profitable restaurant.
But with ingredient prices creeping up, supply chain delays making certain items harder to get, and customers always wanting something new, it’s easy for costs to feel like they’re slipping out of your control.
The good news is you can absolutely bring restaurant food costs down with smart planning, better kitchen habits, and a clear understanding of your numbers.
Let’s start with the basics.
What Should Food Costs Be?
Across the industry, healthy food cost percentages usually fall between 25% and 35% of total food sales. Quick-service restaurants often land between 28% and 32%, while fine dining can be closer to 32% to 35% because of pricier ingredients and higher service costs. If you are sitting around 30%, you are in a solid spot.
To figure out your food cost, use this formula:
Food Cost % = (Cost of Goods Sold ÷ Food Sales) × 100
If you spend $10,000 on food in a month and your food sales are $40,000, your food cost is:
$10,000 ÷ $40,000 × 100 = 25%
That’s right at the low end of the healthy range. Higher than 35% is a sign you may be dealing with waste, rising supplier costs, or menu pricing issues.
Lower than 25% could mean you are overpricing or skimping on quality.
11 Ways to Get Restaurant Food Costs Down This Year
Now that you know where your food costs should sit, let’s talk about what you can do to bring them down. These are some of our favorite exercises for cutting costs without cutting quality.
Keep a Close Eye on Inventory
Regular, accurate counts help you spot waste, overbuying, or theft. Even without fancy tools, building consistent inventory habits can reduce food costs by 5% to 10%.
Make Your Menu Work for You
Every dish should earn its place. Keep the high-margin sellers and the customer favorites that drive traffic. Drop low sellers with poor margins or high waste. Thoughtful menu changes can cut food costs by 3% to 8%.
Work With Your Suppliers
Build relationships and negotiate for better prices. Check competitors to make sure you’re getting a fair deal. Look for bulk buys that make sense with your menu. Strategic supplier management can save 3% to 15% on ingredients.
Use Technology Wisely
Tools like digital inventory trackers, automated ordering, and POS reporting help you order smarter and reduce waste. Using tech strategically can save 4% to 10%.
Standardize Recipes and Portions
Set recipes and exact portions keep you consistent and stop over-portioning. This alone can save 5% to 10% on food costs.
Train Your Team
Make sure everyone understands portion sizes, storage, and waste prevention. A trained team can cut costs by 3% to 7%.
Price Strategically
Small, regular price adjustments help keep margins healthy without surprising customers. This can add 3% to 7% in revenue each year.
Cook With the Seasons
Seasonal ingredients are fresher and usually cheaper. This can save 5% to 10% on those ingredients.
Cross-Utilize Ingredients
Plan your menu so ingredients work in multiple dishes. Bulk buys paired with smart menu planning can save 5% to 15%.
Reduce Waste
Use the whole ingredient and preserve items before they spoil. This both saves money and adds unique touches to your menu.
Know Your Numbers
Tracking food cost percentages and prime costs shows you what is working and what needs to change. This is where we come in. Vast helps restaurant owners stay on top of their numbers so they can make decisions with confidence.
Putting It All Together
Bringing food costs down is not about one magic fix. It is about combining better inventory control, a profit-focused menu, strong supplier deals, the right tech, and a well-trained team, and keeping those habits going.
When you are busy running a restaurant, that can be a lot to juggle.
At Vast, we work with restaurant owners to track the right numbers, spot problems early, and make decisions that actually improve margins.
If you want to see where your food costs stand and how much you could save, let’s talk.
We can walk you through your current numbers, identify quick wins, and build a plan to keep costs in line all year long.
Simply use our easy form here.
We look forward to chatting with you!
