While suppliers regularly raise their prices due to inflation, seasons, or promotions, many restaurant owners still calculate costs using outdated figures. If you don't adjust for this, you lose money on every dish without knowing it. Here's how to quickly and accurately update your food costs.
Why price changes destroy your profit
You calculate with old prices, but pay new prices. The difference comes straight out of your profit.
💡 Example:
Your beef carbonara cost €8.50 in ingredients. Selling price: €28.00 (excl. VAT €25.69). Food cost: 33.1%
Your meat supplier raises the price by 15%. New ingredient costs: €9.73
New food cost: 37.9% - way too high!
Per dish sold you now lose an extra €1.23. At 50 portions per week: €3,198 per year.
How often do suppliers change their prices?
Most suppliers adjust prices:
- Meat/fish: Monthly (market prices)
- Vegetables/fruit: Weekly (seasonal)
- Dry goods: Per quarter
- Dairy: Monthly
Some suppliers send price lists, others don't. You're responsible for keeping track.
Step-by-step plan: updating food costs
⚠️ Attention:
Always update your ingredient prices first before recalculating food costs. Otherwise you're working with outdated data.
Step 1: Collect new price lists
Actively ask your suppliers for updates. Many don't send these automatically.
Step 2: Identify impact on top dishes
Focus first on your highest-volume dishes. These have the biggest impact on your profit.
Step 3: Calculate new food costs
Update the ingredient prices and recalculate the total food cost per dish.
💡 Example calculation:
Pasta carbonara ingredients:
- Pasta: €0.80 (was €0.75)
- Bacon: €2.10 (was €1.85)
- Cream: €0.95 (unchanged)
- Cheese: €1.20 (was €1.10)
- Other: €0.85 (unchanged)
New food cost: €5.90 (was €5.55)
Step 4: Check your new food cost percentage
Calculate: (New food cost / Selling price excl. VAT) × 100
Do you need to adjust your menu price?
If your food cost goes above 35%, you have three options:
- Raise menu price: Most direct solution
- Reduce portion size: Less visible to guests
- Find cheaper ingredient: May affect quality
💡 Calculate price increase:
Food cost: €5.90. Desired food cost: 30%
Minimum selling price excl. VAT: €5.90 / 0.30 = €19.67
Menu price incl. VAT: €19.67 × 1.09 = €21.44
Seasonal price fluctuations
Some ingredients vary significantly by season. From analyzing actual purchasing data across different restaurant types, these patterns emerge consistently:
- Asparagus: €8/kg in season, €18/kg out of season
- Tomatoes: €3/kg summer, €7/kg winter
- Fish: Varies by catch season
Consider seasonal menus or temporary price adjustments.
Digital vs. manual tracking
Manual updates in Excel take time and increase the risk of errors. Systems like KitchenNmbrs let you quickly adjust ingredient prices and automatically recalculate all food costs.
⚠️ Attention:
Never update your menu prices without first recalculating your food costs. You could accidentally reduce your margin.
How do you update food costs when prices change? (step by step)
Collect all new supplier prices
Actively request price lists from your suppliers. Many don't send updates automatically. Focus on your main suppliers for meat, fish, vegetables, and dry goods.
Update ingredient prices in your system
Adjust all changed prices in your recipe database or Excel. Don't forget small ingredients like spices and oil - these can also increase significantly.
Recalculate food costs of top dishes
Start with your 5 best-selling dishes. These have the biggest impact on your profit. Calculate the new total food cost per portion.
Check your new food cost percentage
Divide the new food cost by your selling price excl. VAT and multiply by 100. Above 35%? Then you need to take action.
Adjust menu price or optimize recipe
Raise your selling price, reduce the portion, or find cheaper alternatives. Calculate the impact before you decide.
✨ Pro tip
Set up automatic alerts with your top 3 suppliers to notify you of price changes within 10 days of implementation. This gives you enough time to recalculate costs before your profit margins take a hit.
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 check my food costs?
Check your ingredient prices monthly with your main suppliers. For seasonal products like vegetables and fish, even weekly. This prevents surprises.
Do I need to raise my menu price immediately if ingredients become more expensive?
Not always. Calculate your new food cost first. Still under 35%? Then you can absorb the increase. Above that? Then you need to take action.
How do I prevent missing price changes?
Ask your suppliers to always email price changes. Put it in your calendar to actively ask for updates monthly. Many suppliers communicate this poorly.
Can I predict seasonal prices?
Partly yes. Asparagus is always expensive out of season, tomatoes too in winter. Build this into your menu with seasonal dishes.
What if my competitor doesn't raise their prices?
Focus on your own numbers. If your food cost goes above 35%, you lose money per dish. You can't sustain that long-term, even if your competitor does.
How do I communicate price increases to guests?
Be honest about rising purchase prices. Guests usually understand this. Don't raise everything at once, but spread it over several months.
📚 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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