Your signature dish is your pride, but are you making money from it? Many restaurant owners hold onto their favorite dish, while it secretly eats into their profit. In this article, you'll learn step by step how to calculate whether your signature dish is commercially viable.
Why signature dishes are often unprofitable
The problem with signature dishes is that they often come from passion, not from numbers. Your chef comes up with something delicious, guests are enthusiastic, so it goes on the menu. But nobody calculates whether it's profitable.
⚠️ Note:
Signature dishes often have many ingredients and complex preparation. That makes them expensive to make, but guests don't always expect a higher price.
The 3 pillars of commercial viability
A dish is commercially viable if it meets three conditions:
- Food cost under 35%: You earn enough per portion
- Selling price acceptable: Guests are willing to pay this price
- Volume achievable: You sell enough of it
If one of these three doesn't work out, your signature dish becomes a problem.
Step 1: Calculate the exact cost price
Add up all ingredients. Also the small things you often forget:
- Oil and butter for cooking
- Herbs and spices
- Garnish and decoration
- Sauces and dressings
- Bread or side dishes
💡 Example: Signature ribeye
Ingredients per portion:
- Ribeye 300g: €12.00
- Potato gratin: €1.80
- Vegetables: €2.20
- Herb butter: €0.60
- Jus: €0.80
- Oil/butter for cooking: €0.40
Total cost price: €17.80
Step 2: Calculate the food cost percentage
Use the formula: Food cost % = (Cost price / Selling price excl. VAT) × 100
Note: always calculate with the price excluding VAT. If your dish is €45.00 on the menu (incl. 9% VAT), then the price excl. VAT is: €45.00 ÷ 1.09 = €41.28
💡 Ribeye calculation:
Cost price: €17.80
Menu price: €45.00 incl. VAT
Price excl. VAT: €41.28
Food cost: (€17.80 ÷ €41.28) × 100 = 43.1%
This is too high! Standard food cost is between 28-35%.
Step 3: Test price acceptance
A low food cost doesn't help if nobody buys your dish because it's too expensive. Test this by:
- Compare with similar dishes in your area
- Check how many you sell per week right now
- Ask your team: do guests think the price is fair?
If your signature dish is much more expensive than comparable dishes, it becomes hard to sell.
3 scenarios for your signature dish
Scenario 1: Food cost under 35%, good sales
Congratulations! Your signature dish is commercially successful. Promote it more.
Scenario 2: Food cost too high, good sales
Two options: raise the price or lower the cost price by adjusting ingredients.
Scenario 3: Food cost okay, poor sales
The price is probably too high for what guests expect. Consider a different positioning.
💡 Example: Lowering cost price
Ribeye adjusted to 250g instead of 300g:
- Meat: €10.00 (was €12.00)
- Other ingredients: €5.80
New cost price: €15.80
New food cost: 38.3% (still too high, but better)
The emotional side: letting go of favorite dishes
The hardest part of this calculation is often accepting the result. Maybe your signature dish turns out not to be commercially viable. That doesn't mean it's bad—only that it's too expensive to sell profitably.
You then have three choices:
- Adjust it until it is profitable
- Offer it as a special (limited times, higher price)
- Remove it from the menu and replace it
⚠️ Note:
One unprofitable signature dish can ruin your entire profit margin, especially if it sells well. The more you make of it, the more money you lose.
Use tools for quick calculations
Doing these calculations manually takes time and you'll make mistakes quickly. An app like KitchenNmbrs automatically calculates the food cost of all your dishes, including your signature dishes. That way you immediately see which dishes are profitable and which aren't.
How do you calculate if your signature dish is commercially viable?
Make a complete ingredient list
Write down all ingredients with exact quantities per portion. Don't forget: oil, butter, herbs, garnish and side dishes. Look up current purchase prices from your suppliers.
Calculate the total cost price per portion
Add up all ingredient costs. For example: meat €12 + vegetables €2.20 + garnish €0.80 = €15.00 total cost price per portion.
Calculate the food cost percentage
Divide the cost price by your selling price excluding VAT and multiply by 100. At €15 cost price and €45 menu price: (€15 ÷ €41.28) × 100 = 36.4% food cost.
Assess commercial viability
Food cost under 35% = good. Above that = too expensive. Also check whether guests find the price acceptable and how much you sell per week.
Adjust or decide
Food cost too high? Raise the price, lower the cost price by adjusting ingredients, or remove the dish from the menu. Be honest about what's commercially viable.
✨ Pro tip
Don't just check your signature dish, but also your 5 best-selling dishes. If those are profitable, that compensates for any loss-makers. But never let more than 1 dish stay above 35% food cost.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
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Frequently asked questions
What is an acceptable food cost for signature dishes?
Signature dishes must also stay under 35% food cost. They shouldn't be more expensive than other dishes just because they're 'special'. The profit margin has to work out.
Can I charge a higher price for my signature dish?
Only if guests are willing to pay that price. Test this by looking at how much you sell. If sales drop after a price increase, the price is too high.
What if my signature dish is just slightly above 35% food cost?
Up to 38% can work, but keep an eye on it. Try small adjustments: slightly less meat, cheaper side dishes, or more efficient preparation to lower the cost price.
Should I remove my signature dish if it's not profitable?
Not necessarily. You can adjust it (different ingredients), offer it as a weekend special, or raise the price. Only if nothing works is removal the best option.
How often should I check the cost price of signature dishes?
At least every 3 months, or immediately if suppliers raise their prices. Signature dishes often have expensive ingredients that rise in price faster.
📚 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
- Warenwetbesluit Bereiding en behandeling van levensmiddelen (2024) — Official source
- WHO — Foodborne diseases estimates (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.
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