7 Proven Strategies to Lower Restaurant Food Costs | Savory Hospitality

how to lower food cost in your restaurant

Is Your Food Cost Out of Control? Here’s How to Regain Control and Protect Your Bottom Line

If you're a restaurant owner, chef, or manager struggling to keep food costs in check, you’re not alone. Nearly every hospitality professional has faced rising food costs at some point—sometimes without even knowing the root cause. Whether you’re running a fine dining restaurant, QSR, or café, managing food cost is critical to your long-term profitability.

At Savory Hospitality, we take a holistic, boots-on-the-ground approach to fixing high food costs. Unlike other restaurant consultants who suggest shortcuts like raising menu prices or shrinking portions, we focus on sustainable strategies that improve your bottom line without sacrificing guest satisfaction or food quality.

What Is a Good Food Cost Percentage?

Your ideal food cost will depend on your restaurant’s concept, cuisine, and pricing model. A steakhouse will naturally have higher food costs than a quick-service taco shop, but both need clear goals. Work with your chef and accounting team to set a food cost percentage that supports both profitability and menu quality.

7 Proven Tips to Lower Restaurant Food Costs Control

Here are expert strategies we use to help clients take back control of their food and beverage (F&B) costs:

1. Streamline Your Inventory List

Eliminate unused or duplicate items in your inventory. Verify that item pricing is accurate and reflects current vendor costs. Many cost discrepancies come from incorrect SKUs or out-of-date prices in your inventory system.

2. Calculate Food Cost Regularly

Perform weekly or monthly inventory using a consistent method and tool—whether it's an Excel sheet or inventory software. Here’s the standard food cost formula:

Food Cost % = (Beginning Inventory + Purchases – Ending Inventory) / Food Sales

Example:

• Beginning Inventory = $10,000

• Purchases = $2,000

• Ending Inventory = $10,500

• Food Sales = $5,000

Formula: (10,000 + 2,000 - 10,500) / 5,000 = 1,500 / 5,000 = 30% food cost

3. Review Vendor Invoices Carefully

Compare current pricing with past invoices from periods when food costs were healthy. Pay close attention to pack sizes, units of measure, and vendor substitutions. A product might appear cheaper at first glance, but shrinking pack sizes can mask rising costs.

4. Track Kitchen Waste & Spoilage

Place a waste log near your walk-in or prep area. Train staff to record all spoilage, over-prep, or incorrect dishes. Review it weekly and adjust prep levels or ordering based on real waste patterns. Talk to vendors about better-yielding cuts or produce options.

5. Understand True Yields

Price per pound doesn’t tell the whole story. For example, a $6/lb short rib may yield more usable meat than a $4/lb roast after trimming and cooking loss. Test yields regularly, especially for proteins, and factor in labor and waste.

6. Audit Your POS System

Check your POS for outdated or incorrect pricing—especially on add-ons like extra cheese, avocado, or protein substitutions. Many restaurants miss easy revenue opportunities because these modifiers are underpriced or not tracked.

7. Analyze Plate Costs Using Real Data

Break down each menu item by actual ingredient cost using current vendor pricing and standardized recipes. This allows you to calculate:

Food Cost % per item = Total Ingredient Cost / Menu Price

Use this data to drive menu engineering decisions that improve margin without reducing guest satisfaction.

Final Thoughts: Let’s Build a Profitable, Efficient Kitchen

Controlling food cost is a complex but essential part of running a successful restaurant. It’s not about one quick fix—it’s about aligning your operations, kitchen, and purchasing with long-term goals.

If you’re struggling to find clarity or hit your profit targets, reach out. At Savory Hospitality, we provide hands-on restaurant consulting that helps you cut waste, maximize efficiency, and scale your business profitably.

Contact us today for a full food cost analysis or operations audit.

Salar Sheik

Founder, Savory Hospitality

Your Partner in Restaurant Growth