What does 'food cost percentage' measure?

Food cost percentage measures the ratio of total food costs to total sales. This metric is crucial for a restaurant's financial management as it helps determine how efficiently the establishment uses its food resources in relation to its revenue. By calculating this percentage, managers can assess whether their food costs are in line with industry standards, identify areas where costs may be too high, and make informed decisions regarding menu pricing and inventory management. A lower food cost percentage typically indicates better profitability, while a higher percentage may require corrective action to control expenses and improve margins.

The other options do not accurately reflect the broader concept of food cost percentage. The contribution of appetizers to total sales, the comparison of supplier prices, and the number of ingredients in a dish are important aspects of restaurant operations but do not directly relate to the overall efficiency and profitability evaluated through food cost percentage.