Over 60% of restaurants fail within their first year, and inaccurate food costing plays a major role in these closures. Your dish costs determine if you're making money or bleeding cash every service. Most owners guess at these numbers, then wonder why their profits disappear.
Gather all ingredients and prices
Pick one dish you serve regularly and grab the recipe. Write down every single thing that touches the plate - and I mean everything:
- Main ingredients (meat, fish, vegetables)
- Garnishes and side dishes
- Sauces and dressings
- Oil and butter for cooking
- Spices and seasonings
- Decoration (parsley, lemon)
Now hunt down the actual purchase prices. Dig through your recent invoices or call your supplier directly.
⚠️ Note:
Use what you actually pay, not catalog prices. Discounts and deals often don't show up clearly on invoices.
Calculate the quantity per portion
Time to get precise. Weigh each ingredient for one portion using a kitchen scale. Work in grams - it's more accurate than cups or handfuls.
? Example: Pasta Carbonara
For one portion you use:
- Pasta: 120 grams
- Bacon: 80 grams
- Eggs: 2 pieces
- Parmesan: 30 grams
- Cream: 50 ml
- Olive oil: 10 ml
Convert everything to cost per gram or milliliter. If bacon costs €12 per kilo, then 80 grams runs you: €12 ÷ 1000 × 80 = €0.96.
Add up all costs
Now you can calculate the real cost. Grab a calculator and add up every ingredient cost. This step reveals one of the most common blind spots in kitchen management - owners often underestimate how quickly small ingredient costs accumulate into significant expenses.
? Example: Cost price Pasta Carbonara
Costs per ingredient:
- Pasta (120g at €2.50/kg): €0.30
- Bacon (80g at €12/kg): €0.96
- Eggs (2x at €0.25/piece): €0.50
- Parmesan (30g at €24/kg): €0.72
- Cream (50ml at €3/liter): €0.15
- Olive oil (10ml at €8/liter): €0.08
Total cost price: €2.71
Calculate your food cost percentage
So now you know what the dish costs to make. But is that number good or terrible? You'll find out by calculating food cost percentage.
The formula: Food cost % = (Ingredient costs ÷ Selling price excl. VAT) × 100
? Example: Food cost calculation
You sell the pasta for €16.50 (incl. 9% VAT):
- Selling price excl. VAT: €16.50 ÷ 1.09 = €15.14
- Ingredient costs: €2.71
- Food cost: (€2.71 ÷ €15.14) × 100 = 17.9%
That's a solid margin. Under 30% keeps you profitable.
⚠️ Note:
Always work with prices EXCLUDING VAT. Your menu shows prices with 9% VAT included, so divide by 1.09 to get the base price.
Check if your food cost is healthy
Most successful restaurants run food costs between 28% and 35%. Below that range? You're doing great. Above it? You're probably losing money on every plate.
- Under 25%: Excellent margins, but double-check your pricing isn't too steep
- 25-30%: Strong performance with good profit cushion
- 30-35%: Solid range for most restaurants
- Above 35%: Danger zone - you're likely losing money
If your food cost runs too high, you've got three moves: reduce portions, find cheaper ingredients, or raise your prices.
How do you calculate the cost price of your first dish?
Make an ingredients list
Write down everything that goes on the plate: main ingredients, garnishes, sauces, oil, spices and decoration. Look up the purchase prices of all ingredients from your supplier.
Weigh all quantities per portion
Measure with a kitchen scale exactly how much of each ingredient you use per portion. Calculate the price per gram or milliliter for each ingredient.
Add up all costs
Calculate the costs per ingredient per portion and add everything together. This is your total cost price per dish.
Calculate your food cost percentage
Divide your cost price by your selling price (excl. VAT) and multiply by 100. A healthy food cost is between 28% and 35%.
✨ Pro tip
Start with your most straightforward dish and spend exactly 45 minutes on this calculation. You'll catch pricing errors immediately and avoid months of unprofitable service.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
Calculate it yourself?
Our free food cost calculator does it in seconds.
Was this article helpful?
Frequently asked questions
Do I also need to count small things like salt and pepper?
What if my food cost comes out above 35%?
Do I need to include trimming loss in my calculation?
Can I do this without a scale?
Sources consulted
- EU Verordening 852/2004 — Levensmiddelenhygiëne (2004) — Official source
- EU Verordening 853/2004 — Hygiënevoorschriften voor levensmiddelen van dierlijke oorsprong (2004) — Official source
- EU Verordening 1169/2011 — Voedselinformatie aan consumenten (2011) — Official source
- NVWA — Hygiënecode voor de horeca (2024) — Official source
- NVWA — Allergenen in voedsel (2024) — Official source
- Codex Alimentarius — International Food Standards (2024) — Official source
- FSA — Safer food, better business (HACCP) (2024) — Official source
- BVL — Lebensmittelhygiene (HACCP) (2024) — Official source
Food Standards Agency (FSA) — https://www.food.gov.uk
The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.
Written by
Jeffrey Smit
Founder & CEO of KitchenNmbrs
Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.
More in this category
Related questions
Explore more topics
Calculate it yourself with KitchenNmbrs
All the formulas you learn here — KitchenNmbrs calculates them automatically. Enter your ingredients and instantly see your food cost, margin, and selling price. Try it free for 14 days.
Start free trial →