Introduction
Food cost is one of the biggest factors that determines whether a restaurant is profitable or not.
Many restaurants operate at 35–45% food cost, which makes it extremely difficult to generate real profit.
Chef Bobby Geetha’s consultancy focuses on helping restaurants bring food cost down to around 25%
without compromising quality, portion size, or customer experience.
This guide explains how.
What is Food Cost?
Food cost is the percentage of revenue spent on ingredients.
Formula:
Food Cost % = (Cost of Ingredients / Sales) x 100
Target:
– Ideal range: 25–30%
– Above 35% = problem zone
Why Most Restaurants Have High Food Cost
1. Too many ingredients
2. Poor stock control
3. Over-portioning
4. Wastage
5. No supplier optimisation
Step 1: Reduce Your Menu Size
A large menu increases:
– Waste
– Stock holding
– Complexity
Action:
Cut 20–30% of low-performing dishes.
Result:
Better control + higher efficiency.
Step 2: Standardise Recipes
Every dish must have:
– Exact measurements
– Consistent prep method
Result:
No variation = controlled cost.
Step 3: Cross-Utilisation of Ingredients
Use the same ingredients across multiple dishes.
Example:
One sauce → multiple menu items
Result:
Lower purchasing cost and waste.
Step 4: Portion Control
Train kitchen staff to:
– Use weighing scales
– Follow exact portions
Result:
Prevents profit leakage.
Step 5: Supplier Optimisation
Review suppliers regularly:
– Compare pricing
– Negotiate better deals
– Bulk smartly
Result:
Lower ingredient cost without compromising quality.
Step 6: Reduce Waste
Track:
– Daily waste
– Spoilage
– Prep leftovers
Result:
Immediate cost savings.
Step 7: Menu Pricing Strategy
Not all dishes should be priced equally.
Action:
– Increase price on high-demand items
– Adjust low-margin dishes
Result:
Improved overall margin.
Real Impact
Restaurants implementing these systems typically achieve:
– 5–15% reduction in food cost
– Improved kitchen efficiency
– Higher profitability
Lead Funnel Section
Struggling with high food cost?
Get a Free Food Cost Audit:
– Menu analysis
– Cost breakdown
– Profit improvement plan
Book your free consultation now.
Conclusion
Reducing food cost is not about cutting quality.
It’s about building a system.
Chef Bobby Geetha helps restaurants create systems that protect profit while maintaining excellence.