PrepSheet

UK food cost & gross profit benchmarks: what kitchens actually run at

Figures from the UKHospitality × Christie & Co Benchmarking Report (2022 edition, covering roughly 4,800 outlets across 54 hospitality companies) — the largest published UK dataset. Presented here as targets to price against, not as this year's numbers.

The working answer, if you just need a number: aim for a food cost of 30–35% of the ex-VAT selling price, which is a food gross profit of 65–70%. That range is where the big UK survey data actually sits, segment by segment, and it's the range most operators budget to.

GP is measured on the ex-VAT price — get this wrong and every number lies

Gross profit percentage is (net selling price − cost) ÷ net selling price, where the net selling price is the menu price with VAT stripped out (divide the inc-VAT price by 1.2 at the standard rate). A £14 dish is £11.67 net; if the plate costs £3.85, the GP is £7.82 — 67%, not the 72.5% you'd get by dividing into the £14. Costing against the VAT-inclusive price flatters every dish by 5–7 points and is the single most common reason a menu that "runs at 70%" produces mid-50s in the accounts.

Run your own numbers on the free GP calculator — it does the VAT stripping for you.

Food GP by segment (UKHospitality/Christie & Co survey)

SegmentFood GPFood cost equivalent
Accommodation-led69%31%
Community local pubs68%32%
Food-led pubs68%32%
High street venues66%34%
Nightclubs66%34%
Wine bars66%34%
Casual dining65.9%34.1%
Whole survey67%33%

Every segment lands inside 65–70%. Nobody's secretly running restaurant food at 80% GP, and a menu below 60% has a pricing problem, not a personality.

The trend line — and the VAT-cut asterisk

Survey-average food GP moved from 63.8% (2017) to 64.2% (2018) to around 67% (2022). Treat the 2022 jump with care: it was measured while the temporary hospitality VAT cut (which ended April 2022) was still boosting margins. The structural, repeatable level for UK food GP is the mid-60s; budget for that and let anything better be upside.

What the recycled advice gets wrong

Most "UK food cost percentage" pages online are US content with the dollar signs swapped. Three claims worth un-learning:

The tied-pub exception — the one place the rule really changes

Tied pubs in the survey ran a wet GP of 61.2% against 68.9% free-of-tie — nearly 8 points surrendered on drinks through the tie. Food showed no such gap (67.3% tied vs 67.1% free). If you're tied, food is the margin lever the tie can't touch, which is a genuine strategic reason to grow the food side.

Using the benchmark without being used by it

A benchmark is a sanity check, not a pricing method. Cost each dish properly (pack price ÷ yield × quantity, per portion), price it to your target GP on the net figure, then check the menu's blended GP lands in the 65–70% band. Individual dishes can and should sit outside it — a 60% GP dish that sells forty covers a night out-earns a 72% dish that sells three.

Track where you actually land, weekly, with the Weekly GP & Food Cost tracker — or cost the menu dish by dish with the Food Cost & Menu Pricing template.

Stop guessing your margins. Price any dish in seconds with the free food cost calculator, or get a ready-made Excel costing template for your whole menu — built by a working chef.

Run the free calculator → · See the templates →