Food Cost % Calculator: Actual vs Theoretical
COGS from opening stock, purchases and closing stock, then actual food cost % and the dollar variance against your recipe costs. Every formula and assumption is listed below. Change any default that does not match your venue.
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Actual vs theoretical food cost %
COGS
$14,500
Actual food cost %
30.2%
Variance (points)
+2.2
Variance this period
$1,060
unexplained cost (waste, portioning, theft, price rises)
Formula & assumptions
Cost of goods sold (COGS) = opening inventory + purchases − closing inventory, all at cost, for the same period. Actual food cost % = COGS ÷ food sales × 100.
Theoretical food cost % is what your recipe costs say you should have used (sum of recipe cost × items sold ÷ food sales). Get it from your recipe costing or POS mix report. Variance = actual − theoretical; the dollar figure is variance × sales.
Use food sales only (exclude beverages and tax/GST) and count stock on the same day each period, or the result will swing. Defaults are examples, not benchmarks.
Next step: put this number in a tool that tracks it every week
Pricing and trial terms are on the vendor site.
Methodology
- COGS = opening inventory + purchases − closing inventory, all at cost, over the same period.
- Actual food cost % = COGS ÷ food sales (excluding beverages and sales tax/GST).
- Theoretical food cost % comes from your recipe costs and sales mix. Variance points = actual − theoretical; variance dollars = variance points × food sales.
- Defaults are illustrative only, not benchmarks.
Related comparisons
FAQ
What is the difference between actual and theoretical food cost?+
Actual comes from stock counts and invoices. Theoretical is what recipes say you should have used for what you sold. The gap is waste, over-portioning, theft, unrecorded comps or price changes not yet in your recipes.
Where do I get theoretical food cost?+
From recipe costing in your inventory software or a spreadsheet: sum of (recipe cost × items sold) ÷ food sales.
How often should I count?+
Use the same interval every time (weekly or monthly) and count on the same day, or the percentage will swing for reasons that are not real.
General information only. Not payroll, legal or financial advice. Check figures with your accountant or payroll provider. How we research.