Most successful restaurants target food costs of 28-35% of the menu price, which translates to margins of 65-72%. Fine dining restaurants may run slightly higher food costs because they charge premium prices, while fast-casual operations typically aim for lower food cost percentages.

Beverages, pasta dishes, and pizza generally have the highest margins in food service, often exceeding 75%. Protein-heavy dishes like steak or seafood tend to have lower margins due to higher ingredient costs. Strategically promoting high-margin items can significantly boost overall profitability.

Food waste directly erodes your margins because you paid for ingredients that were never sold. Industry studies suggest restaurants waste 4-10% of purchased food. Tracking waste by item and implementing portion control can recover a substantial portion of lost margin.