What is the food cost for a burger joint?

Our business plan for a burger joint will help you build a profitable project

This article provides a comprehensive guide to understanding food costs for a burger joint. The breakdown includes average cost percentages, ingredient pricing, supplier trends, and strategies for maintaining profitability.

It’s essential for any burger joint owner to maintain a clear grasp on food costs. An understanding of these figures will allow you to price your menu effectively and avoid unnecessary waste or inefficiencies.

Let’s dive into the most common questions and their answers regarding food costs in a burger joint.

What is the average total food cost percentage for a burger restaurant in this market?

The average total food cost percentage for a burger joint in 2025 typically ranges between 28% and 35% of total food sales. Most quick-service burger restaurants strive to stay within this range, with 28% being ideal for those who manage their ingredients well.

A food cost percentage above 35% often signals inefficiencies with ingredient management or pricing. Keeping it within the target range ensures you have room to cover other operating expenses and remain profitable.

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How much do ingredients for each core menu item cost when calculated per portion?

Ingredient costs for a typical burger are broken down as follows per serving:

The total ingredient cost for a basic burger with fries averages around $4.20–$4.50, excluding labor and utilities.

What is the ideal target food cost percentage for a burger joint to stay profitable?

The ideal target food cost percentage for a profitable burger joint is between 28% and 32%. Staying within this range ensures you have sufficient margins after accounting for labor, rent, and other operational expenses.

Achieving food costs below 28% may indicate underpricing your menu, potentially affecting the quality or portion sizes. Anything above 32% often means you need to reassess your menu pricing or supplier contracts.

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How are supplier prices for beef, buns, cheese, and sauces trending over the past 12 months?

Prices for essential ingredients like beef, buns, cheese, and sauces have generally increased in the past year. Inflation, supply chain issues, and commodity price volatility have caused these items to rise, especially beef, which has seen a significant price increase.

Beef prices have risen the most, with cheese and buns following closely behind. Bulk sauces have had a smaller increase but are still impacted by rising costs.

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What portion sizes and recipes are currently used for each burger on the menu?

Standard portion sizes for a burger typically include a 4–6 oz beef patty (pre-cooked), a slice of cheese (20–24 grams), and a standard bun. Garnishes like lettuce, tomato, and onions average 10–15g each. Sauce portions typically range from 12–15g per burger.

These portions can vary slightly depending on the style of burger or customization options offered on the menu.

What is the yield percentage after trimming, cooking, and waste for each main ingredient?

After considering trimming, cooking, and waste, the following yield percentages apply to the main ingredients used in burgers:

These yields will vary depending on the quality of the ingredients and how they are handled during preparation and cooking.

How are delivery charges, storage costs, and spoilage factored into the total food cost?

Delivery charges, storage (including refrigeration), and spoilage typically account for an additional 3-6% of total food costs. These costs are either distributed across menu items or included as a separate line item in the Cost of Goods Sold (COGS).

Understanding how these expenses affect your total food cost helps ensure that you accurately price your menu and manage inventory efficiently.

What is the current menu pricing strategy and how does it compare to competitors’ prices?

Menu pricing is usually set using a cost-plus markup strategy, which ensures food costs stay within the 28–32% range. Pricing is regularly compared to competitors in the same market to ensure competitive positioning.

Many burger joints adjust their prices based on market demand, price perception, and local competition. Most restaurants review competitor pricing monthly or quarterly to stay competitive.

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How often are food cost reports reviewed and adjusted to reflect market price changes?

Best practices suggest food cost reports should be reviewed weekly or bi-weekly. In volatile markets, adjustments to portion sizes, ingredient sourcing, or menu prices might be necessary to stay within the desired food cost range.

Automated systems can assist with real-time tracking of food costs and inventory levels, ensuring that adjustments can be made promptly.

What purchasing or inventory system is used to track ingredient costs and waste?

Most burger joints use POS-linked inventory management tools or specialized restaurant software to track ingredient usage, waste, and reorder thresholds. These systems help streamline operations and ensure more accurate food cost tracking.

Using an inventory system helps identify trends in ingredient waste and over-purchasing, allowing for better cost control.

What discounts or volume deals can be negotiated with current or alternative suppliers?

Many suppliers offer volume-based pricing, early payment discounts, and loyalty rebates. Negotiating better terms with existing suppliers or considering alternative suppliers for bulk purchases can reduce ingredient costs.

Purchasing groups or consolidating buying power with other businesses in your area can also provide access to better rates.

How does the current food cost align with the overall profit margin and labor expenses?

For a typical burger joint, labor usually accounts for 20–25% of total sales, and food costs should remain between 28–32%. Maintaining a balance between food costs, labor, and overhead is critical for profitability.

Managing labor costs alongside food costs allows for net margins of 8–16%, depending on the efficiency of operations.