How to Calculate Food Cost in a Restaurant. It doesn't matter that you have the best menu in town, a high-traffic location, beautiful decor and rave reviews if your restaurant charges $12 for a ...

True Food Cost Gross Profit Margin. You probably already know how to calculate a profit margin: (Selling Price – Cost of Goods) / Selling Price = Gross Profit; For example: an item that sells for $10, ...