Free restaurant financial tool
Food Cost Variance Calculator
See the difference between what your food should have cost and what it actually cost, then quantify the potential gap.
Enter your numbers
Use the same period and food-cost basis throughout. Theoretical food cost % is the expected ingredient cost based on recipes and sales mix, divided by food sales. Use current recipe costs for the period.
Purchases after vendor credits and returns; exclude beverages and supplies.
Optional adjustments and known waste
Transfers in add to food available; transfers out, employee meals and comps are removed from the sold-food comparison. Enter meals and comps at ingredient cost, not menu price. Waste remains in actual usage so it can explain part of the gap.
Your information is not saved or sent to TrueCount Services.
What is restaurant food cost variance?
Restaurant food cost variance is the difference between theoretical food cost (what recipes and sales mix suggest should have been used) and actual food usage in the same period. This calculator compares theoretical cost with actual usage adjusted for employee meals and complimentary meals. Actual usage starts with beginning inventory + purchases + transfers in − ending inventory − transfers out. Employee meals and comps entered at food cost are removed before comparing sold-food usage with theoretical cost. Recorded waste stays in actual usage and is identified within the gap. The remaining amount is an estimate, not proof of theft or waste.
Portioning, spoilage, recipe errors, vendor prices, inventory counts, transfers and recording errors can all affect the result. Make sure the sales, recipe mix, and inventory cover the same period. Negative remaining variance can occur when recorded waste exceeds the overall gap.
Need to calculate actual food cost first? Use the Restaurant Actual Food Cost Calculator. To review recipe and portion costs for an item, use the Restaurant Menu Pricing Calculator.
Results are estimates based on the figures entered and are for restaurant management and planning.