Track food cost percentage monthly, average check size, and your top 5 dishes quarterly. Compare same months year-over-year to filter seasonal effects. Revenue growth means nothing if your margins shrink.
Most restaurant owners celebrate higher revenue while their profits quietly disappear. You're comparing last year's numbers, but are you looking at the right ones? Revenue tells you nothing about profitability.
Compare the right figures (not just revenue)
Higher revenue doesn't automatically mean more profit. You need to examine the relationship between costs and income.
💡 Example:
Restaurant A in 2024:
- Revenue: €450,000 (+€50,000)
- Food cost: 38% (was 32%)
- Ingredient costs: €171,000 (+€45,000)
More revenue, but less profit due to higher food cost.
Check your food cost percentage monthly
This figure matters most. Rising food costs mean you're earning less per dish sold.
Formula: Food cost % = (Total ingredient costs / Revenue excl. VAT) × 100
💡 Monthly comparison:
March 2024 vs. March 2023:
- 2023: €35,000 revenue, €10,500 ingredients = 30% food cost
- 2024: €38,000 revenue, €13,300 ingredients = 35% food cost
Conclusion: 5% worse margin despite higher revenue
⚠️ Note:
Always calculate with revenue excluding VAT. For restaurants, that's your revenue divided by 1.09.
Analyze your average check size
More guests but lower average checks? Your total profit could still drop.
Formula: Average check = Total revenue / Number of covers
- Rising check = guests order more or pricier dishes
- Falling check = you're prioritizing volume over margin
- Stable check = solid balance between price and quality
Review your top 5 dishes per quarter
Your bestsellers drive 70-80% of your profit. Verify their food costs still make sense. I've seen this mistake cost restaurants €200-400 per month because they don't adjust portion sizes or prices after ingredient costs rise.
💡 Quarterly check:
Steak (bestseller):
- Q1 2023: €8.50 cost, €28.00 selling price = 30.4% food cost
- Q1 2024: €10.20 cost, €28.00 selling price = 36.4% food cost
Action: Raise price to €32.00 or adjust portion
Monitor your waste and loss
More waste equals higher costs without extra revenue. Pure profit loss.
- Track daily waste amounts
- Verify you're not over-ordering for expected traffic
- Watch seasonal products that spoil faster
⚠️ Note:
Even 2% extra waste can slash your annual profit by thousands of euros. At €400,000 revenue, that's €8,000 per year.
Compare your labor costs per revenue euro
Need more staff for the same revenue? Your profit margin drops.
Formula: Labor cost % = (Total payroll / Revenue excl. VAT) × 100
- Standard for restaurants: 25-35%
- Increases might signal wage agreements or inefficiency
- Decreases could mean you're understaffed
How do you check if your kitchen is running better? (step by step)
Calculate your food cost from the same month last year
Get your figures from, for example, March 2023. Divide your total ingredient costs by your revenue excluding VAT. This gives you the food cost percentage from back then.
Calculate your food cost from this month
Do the same for March 2024. Make sure you calculate both months the same way (both including or excluding VAT).
Compare your average check per guest
Divide your monthly revenue by the number of covers. If this drops while your food cost rises, you're earning less per guest than last year.
Check the cost of your 3 most popular dishes
Calculate what your best-selling dishes cost now versus last year. Suppliers regularly raise prices without you noticing.
Monitor your waste and loss weekly
Track how much you throw away. If this increases, your profit leaks away without you making more revenue. Even small percentages have big impact.
✨ Pro tip
Calculate your profit per square meter monthly by dividing net profit by dining room size. If it drops below €180/m² consistently, you're losing ground regardless of revenue growth.
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 often should I make this comparison?
Check your food cost monthly and your most popular dishes quarterly. This prevents problems from going unnoticed for too long.
What if my supplier raised their prices?
You need to choose: raise your own prices, reduce your portions, or find another supplier. Doing nothing means less profit.
Should I account for seasonal fluctuations?
Yes, always compare the same month. December 2024 with December 2023, not with January 2024. This filters out seasonal effects.
📚 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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