Restaurant Food Cost Calculator Nigeria — Food Cost % & Pricing

The ideal food cost percentage for Nigerian restaurants is 28–35%. Fast food and quick service restaurants aim for 28–30%. Casual dining typically runs 30–35%. Fine dining can go up to 38–40% because the higher menu prices still generate strong profit. Above 40% signals a pricing or waste problem.

Food cost % = (Ingredient cost ÷ Menu price) × 100. For example, if a plate of jollof rice with chicken costs ₦1,800 in ingredients and you charge ₦5,000, your food cost is 36%. Track this for every menu item to find which dishes are most profitable.

Food cost only includes the cost of ingredients. Prime cost adds labour (kitchen staff, servers) to food cost. Prime cost percentage should ideally stay below 65% of revenue for a healthy restaurant operation. In Nigeria, labour is often lower as a percentage, giving restaurants more flexibility.

Reduce food cost by: buying ingredients in bulk from reliable suppliers, reducing portion waste, menu engineering (promoting high-margin items), adjusting recipes to use less expensive ingredients, minimising theft and over-portioning, and regularly reviewing supplier pricing.

Use the food cost percentage formula: Menu price = Ingredient cost ÷ target food cost %. If ingredients cost ₦1,500 and you target 30% food cost, price the dish at ₦5,000. Also factor in overhead, desired profit, and what the market will pay. Always round to psychologically friendly prices.