Your food cost is too high and your profit is melting away. This is a common problem: your business is doing well, but the numbers don't add up. In this article you'll learn step by step how to adjust your menu to bring your food cost back to a healthy level.
First check where the problem is
Before you start adjusting prices, you need to know which dishes are causing the problem. Not all dishes have the same impact on your profit.
💡 Example:
Restaurant De Keuken has 15 dishes on the menu:
- 5 dishes with 28% food cost (great)
- 7 dishes with 32% food cost (acceptable)
- 3 dishes with 42% food cost (problem!)
Focus on those 3 dishes, not all 15.
Calculate your new minimum selling price
For each problematic dish, calculate what the minimum selling price needs to be to achieve a healthy food cost. The formula is simple:
Minimum selling price excl. VAT = Ingredient costs ÷ (Desired food cost % ÷ 100)
💡 Example calculation:
Steak with ingredient costs of €12.50:
- Desired food cost: 30%
- Minimum price excl. VAT: €12.50 ÷ 0.30 = €41.67
- Minimum price incl. 9% VAT: €41.67 × 1.09 = €45.42
If you're currently charging €38.50, you're losing money on every portion.
⚠️ Note:
Always calculate first excl. VAT and then add VAT afterwards. Otherwise you'll make an error of 2-3 percentage points in your food cost.
Choose your strategy: raise prices or lower costs
You have three options to lower your food cost. Often a combination works best:
- Raise selling price: Most direct solution, but can scare off customers
- Lower ingredient costs: Different supplier, different products, smaller portions
- Remove dish from menu: Drastic, but sometimes necessary for chronic money-losers
💡 Example strategy choice:
Seafood pasta, current situation:
- Selling price: €24.50 (€22.48 excl. VAT)
- Ingredient costs: €9.80
- Food cost: 43.6% (way too high!)
Option 1: Raise price to €28.50 → food cost becomes 32%
Option 2: Lower costs to €7.50 → food cost becomes 33%
Option 3: Combination: price €26.50 + costs €8.00 → food cost becomes 33%
Raise prices smartly and gradually
Price increases don't necessarily scare off customers if you do it right. Most guests accept reasonable increases, especially if quality stays good.
- Start with your least popular dishes: Less impact, less noticeable
- Increase in steps of €1.50-€2.50: Big jumps are too obvious
- Don't change everything at once: Spread it over 2-3 months
- Don't communicate about price increases: Just quietly implement them
Lower ingredient costs without losing quality
Sometimes you can lower costs without guests noticing. This requires more creativity than raising prices, but can be more effective.
- Different supplier: Compare prices, especially for expensive ingredients
- Use seasonal products: Winter tomatoes cost 3x more
- Adjust portion sizes: 200g meat instead of 250g saves €2-3 per portion
- Look critically at garnish: Those expensive microgreens cost €0.80 per plate
💡 Example cost reduction:
Salmon dish, original costs €11.20:
- Salmon 180g → 160g: savings €1.20
- Expensive garnish → simpler: savings €0.60
- Different vegetable supplier: savings €0.40
New costs: €9.00 (€2.20 savings per portion)
Monitor results and adjust
After making changes, you need to watch whether the desired effect occurs. Food cost can fluctuate due to seasons and supplier prices.
- Check your food cost per dish monthly
- Watch your total revenue: Are sales declining due to higher prices?
- Keep an eye on supplier prices: They can go up again
- Adjust again if needed: This isn't a one-time action
A system like KitchenNmbrs helps track these numbers automatically, so you quickly see when adjustments are needed.
How do you adjust your menu? (step by step)
Analyze your current food cost per dish
Calculate for each dish: (ingredient costs ÷ selling price excl. VAT) × 100. Focus on dishes above 35% food cost.
Calculate new minimum prices
For problematic dishes: ingredient costs ÷ (desired food cost % ÷ 100). Then add 9% VAT for the menu price.
Choose your approach per dish
Decide whether you raise the price, lower costs, or do a combination. Start with the least popular dishes.
Implement changes gradually
Don't change everything at once. Spread price increases over 2-3 months and raise in steps of €1.50-€2.50.
Monitor and adjust
Check your food cost and total revenue monthly. Supplier prices change, so this isn't a one-time action.
✨ Pro tip
Check your 5 best-selling dishes first. If those have a healthy food cost, you've already solved 80% of your problem. Focus your energy there, not on dishes you only sell 2x per week.
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
How much can I raise my prices without losing customers?
Increases of €1.50-€2.50 per dish are usually accepted, especially if you do it gradually. Avoid big jumps of €5+ at once.
What if my food cost is higher than 35% but guests already think the current price is high?
Then you need to focus on cost reduction: different supplier, smaller portions, or cheaper garnish. Sometimes the dish just isn't profitable.
Do I need to adjust all dishes at once?
No, start with your 3-5 worst-performing dishes. Once those are working, tackle the next ones. This prevents your entire menu from suddenly becoming more expensive.
How often should I check my menu prices?
At least every 3 months, because supplier prices change regularly. During high inflation or with seasonal products, check monthly.
Is it better to remove a dish from the menu than raise the price?
If a dish consistently loses money and you can't lower costs enough, removing it is sometimes the best option. Focus your energy on profitable dishes.
What is a healthy food cost percentage for restaurants?
For most restaurants, a healthy food cost is between 28-35%. Fine dining can be higher (up to 38%), fast-casual lower (25-30%).
📚 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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