Are your extra large variants actually making you money? Most restaurant owners assume bigger portions equal bigger profits, but that's not always true. The math might surprise you.
Why extra large often delivers less
An extra large pizza for €2 more seems logical. But if those extra ingredients cost €3, you're losing €1 per pizza. This happens more often than you'd think.
⚠️ Watch out:
Many entrepreneurs only look at the price increase, not the extra costs. This makes large variants seem more profitable than they actually are.
Calculate the real impact per variant
For each extra large variant you need three numbers:
- Price increase: How much extra are you charging?
- Extra ingredient costs: What do the extra ingredients cost?
- Impact on margin: Are you making more or less?
💡 Example: Extra large burger
Regular burger: €12.50 (food cost €3.75 = 30%)
- Extra meat (50g): €1.20
- Extra cheese: €0.30
- Extra vegetables: €0.25
Extra ingredients: €1.75
Price increase: €2.00
Extra profit: €2.00 - €1.75 = €0.25
Formula for margin impact
Use this formula to quickly see if a variant is worth it:
Margin impact = (Price increase excl. VAT) - (Extra ingredient costs)
Positive = more profit
Negative = less profit
💡 Example: Extra large pasta
Price increase: €3.50 incl. VAT = €3.21 excl. VAT
- Extra pasta (100g): €0.15
- Extra sauce: €0.40
- Extra topping: €0.80
Extra costs: €1.35
Margin impact: €3.21 - €1.35 = €1.86 extra profit ✓
Audit your current extra large variants
Go through your menu and examine each variant:
- What extra ingredients are in it?
- What do those ingredients really cost?
- How much extra are you charging?
- Is there profit left?
⚠️ Watch out:
Don't forget the small things: extra sauce, more vegetables, double cheese. Those small amounts add up quickly.
What to do with loss-making variants
If a variant is running at a loss, you have three options:
- Raise the price: Charge more for the upgrade
- Adjust the portion: Use fewer extra ingredients
- Remove the variant: If nobody misses it
💡 Example: Adjustment
Extra large salad is running at a loss of €0.50 per unit
Solution: Increase price from €2.00 to €3.00
Result: €0.50 loss becomes €0.42 profit
Track everything with a system
After managing kitchen operations for nearly a decade, I've learned that manual calculations become overwhelming with multiple variants. A food cost calculator automatically computes the margin per variant, so you immediately see which ones are profitable.
You enter the ingredients, the system does the math. No spreadsheets, no calculator, no errors.
How do you calculate margin impact? (step by step)
List all extra ingredients
Write down what's extra in the large variant: more meat, extra cheese, double sauce. Also include small things like extra oil or spices.
Calculate total extra costs
Add up all extra ingredient costs. Use your actual purchase prices, not estimated amounts. Don't forget to factor in cutting waste.
Subtract from the price increase excl. VAT
Calculate your price increase excluding VAT and subtract the extra costs from it. Positive means more profit, negative means you're losing money on the variant.
✨ Pro tip
Calculate your 5 most popular extra large variants within the next 48 hours. If those are profitable, you've solved roughly 80% of your potential margin leaks.
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
Should I calculate with VAT included or excluded?
Always calculate with prices excluding VAT. If you charge €3.00 extra including VAT, that's €2.75 excluding VAT at 9% VAT rate. Subtract your extra ingredient costs from that amount.
What if my extra large variant is running at a loss?
You have three options: raise the price increase, use fewer extra ingredients, or remove the variant from the menu. Choose what works for your concept and customer expectations.
How often should I recalculate these margins?
Recalculate every time your supplier raises prices, or at minimum every 3 months. Ingredient prices fluctuate regularly, so your margin impact changes too. Don't let profitable variants turn into loss-makers without noticing.
📚 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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