---
title: Hotel Food Cost Percentage: Formula and Examples
description: The food cost percentage formula, a worked hotel kitchen example, typical ranges, why it drifts and seven ways to bring it back, from receiving to portions.
url: https://www.tivuzo.com/guides/hotel-food-cost-percentage/
updated: 2026-11-03
---

Guide · 9 min read

# How to calculate food cost percentage.

The formula, a worked hotel kitchen example, how to handle board rates, why food cost drifts and seven practical ways to bring it back.
By the Tivuzo team · Updated 3 November 2026

**Short answer:**
Food cost percentage = cost of food used ÷ food revenue × 100. Cost of food used = opening food stock + food purchases (or issues to the kitchen) − closing food stock, adjusted for staff meals and transfers. Many hotel kitchens aim for roughly 25–35% depending on the menu and market; what matters most is knowing your number every week and spotting when it moves.

## The formula

**Cost of food used** = opening stock + purchases − closing stock − staff meals − transfers out (for example, fruit sent to the bar)

**Food cost %** = cost of food used ÷ food revenue (excluding VAT) × 100

If your kitchen draws from a main store, use issues to the kitchen instead of purchases, and count the kitchen's own stock at the start and end of the period.

## Worked example: one month

| Item | KSh |
|---|---|
| Opening kitchen stock | 180,000 |
| Issues from main store and direct deliveries | 1,240,000 |
| Closing kitchen stock | (210,000) |
| Staff meals | (95,000) |
| Fruit transferred to the bar | (15,000) |
| Cost of food used | 1,100,000 |
| Food revenue (restaurant, room service, meals in board rates) | 3,450,000 |
| Food cost % | 31.9% |

## Meals in board rates

For bed and breakfast, half-board and full-board guests, part of the room rate is food revenue. Split it out using the meal plan price, so breakfast eaten by B&B guests counts as food revenue. Otherwise food cost looks terrible and room revenue looks better than it is.

## Why food cost drifts

| Cause | Sign |
|---|---|
| Supplier prices rising | Purchases up, covers flat. |
| Short or poor deliveries accepted | Received quantities don't match orders. |
| Over-portioning | High cost on dishes with no price change. |
| Waste and spoilage | Bins full, stock thrown out unrecorded. |
| Theft | Stock variance on high-value items: meat, fish, oil. |
| Menu mix | More of the expensive dishes sold. |
| Unrecorded staff meals | Cost high on days with more staff on shift. |

## Seven ways to bring it back

- **Receive against the order**Weigh and count deliveries; reject or note short and poor-quality items.
- **Compare supplier prices monthly**For the twenty items that make up most of your spend.
- **Issue, don't open the store**The kitchen requests; the storekeeper issues and records it.
- **Standard portions**Weigh portions for the most expensive dishes and train the line.
- **Record waste**Spoiled food is recorded with a reason; patterns show up.
- **Count weekly**At least the high-value items; the variance points to the problem.
- **Cost the menu**Know the cost of each dish and price it accordingly.

## In Tivuzo

Deliveries are received against the purchase order, issues to the kitchen move stock and post food cost, waste is recorded with a reason, and counts post their variance. Meal plans separate food revenue in board rates. So food cost this week is a number you read, not one you work out. See [inventory and stores](https://www.tivuzo.com/hotel-inventory-management-software/), [procurement](https://www.tivuzo.com/hotel-procurement-software/) and [hotel stores control](https://www.tivuzo.com/guides/hotel-stores-control/).

## Food cost questions

### What is a good food cost percentage for a hotel?

Many hotel kitchens work in a range of roughly 25–35%. Fine dining with expensive produce can run higher; buffets and set menus can run lower. Track your own trend.

### Is food cost calculated on purchases or usage?

On usage: opening stock plus purchases minus closing stock. Purchases alone swing with delivery days.

### Should staff meals be in food cost?

Take them out of food cost and record them as a staff cost, so the kitchen's number reflects what guests ate.

### How often should a hotel calculate food cost?

Weekly for control, monthly for the accounts.

### What about beverage cost?

Beverage cost uses the same formula with bar stock and bar revenue. See [bar stock control](https://www.tivuzo.com/guides/hotel-bar-stock-control/).