Nearly 70% of restaurants struggle with food cost control, yet a 40% food cost isn't universally bad news. Fine dining establishments can often absorb this percentage due to premium pricing structures. But for bistros? You're likely bleeding money.
40% food cost in fine dining context
Fine dining restaurants can often handle higher food cost percentages due to their pricing and cost structure:
- Higher selling prices: A main course of €45-65 offers more margin room
- Premium ingredients: Wagyu beef, fresh truffle and fresh fish are simply expensive
- Complex preparation: More ingredients per dish, extensive garnishes
- Smaller portions: Focus on quality over quantity
💡 Fine dining example:
Dish: Wagyu beef with truffle, €58 incl. VAT (€53.21 excl. VAT)
- Wagyu beef 180g: €16.20
- Truffle 5g: €3.50
- Other ingredients: €1.80
Food cost: €21.50 / €53.21 = 40.4%
In fine dining this can still be workable due to lower staff density per revenue euro.
40% food cost in bistro context
For a bistro, 40% food cost is usually problematic:
- Lower selling prices: Main courses between €18-28
- Higher turnover rate: More guests, faster service expected
- Simpler ingredients: Less room for expensive products
- Standard portions: Guests expect full plates
💡 Bistro example:
Dish: Steak with fries, €24 incl. VAT (€22.02 excl. VAT)
- Steak 200g: €6.40
- Fries + garnish: €1.20
- Sauce and butter: €1.20
Food cost: €8.80 / €22.02 = 40.0%
For a bistro this is too high. Aim for a maximum of 32%.
⚠️ Note:
A 40% food cost leaves little room for staff costs, rent and profit. Always check your total cost structure, not just food cost.
40% food cost becomes acceptable here
A 40% food cost can be workable in certain situations:
- Very high selling prices: Above €40 per main course
- Low labor costs: For example through efficient kitchen or less service staff
- Signature dishes: Bestsellers that attract guests, other dishes compensate
- Special occasions: Valentine's Day, Christmas - higher prices possible
Here's what most kitchen managers discover too late: context matters more than the percentage itself. A 40% food cost on a €50 dish leaves you with €30 for everything else. That same percentage on a €20 dish? You're left with just €12.
Taking action at 40% food cost
If your food cost consistently hits 40%, consider these options:
- Adjust portion sizes: 10% less meat saves 2-4 percentage points
- Cheaper alternatives: Different meat or fish types
- Raise prices: €2 more can bring food cost down to 35%
- Menu engineering: Guide guests toward profitable dishes
💡 Calculation example adjustment:
Current: €8.80 ingredients on €22.02 = 40%
- Option 1: Price to €26 → €8.80 / €23.85 = 36.9%
- Option 2: Ingredients to €7.50 → €7.50 / €22.02 = 34.1%
Both options bring you into a healthier range.
How do you assess whether 40% food cost is acceptable?
Determine your restaurant type and price level
Fine dining (€40+ main courses) has more room for higher food cost than casual dining (€15-25). Check your average main course price and market positioning.
Calculate your total cost structure
Add up food cost (40%) + labor costs (25-35%) + other costs (15-20%). If this exceeds 80%, you have a problem regardless of your restaurant type.
Compare with your competitors and targets
Check what similar restaurants charge for similar dishes. If you charge €24 where others ask €28, you can raise your price instead of lowering food cost.
✨ Pro tip
Track your food cost daily for 14 consecutive days, not just weekly averages. Fine dining can absorb 40% during slower periods, but bistros need immediate adjustments at this level.
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
Is 40% food cost always too high?
No, it depends on your concept. Fine dining restaurants can often handle this due to higher prices and lower labor costs per revenue euro. For bistros and casual dining, 40% is usually too high.
What if only my signature dish has 40% food cost?
One dish with high food cost can be acceptable if it attracts guests and other dishes compensate. Make sure your overall food cost stays below 33%. Think of it as a loss leader that drives traffic.
Should I include VAT when calculating food cost?
No, always calculate excluding VAT. A price of €24 incl. VAT is €22.02 excl. VAT. Always use the excl. VAT price for food cost calculations.
📚 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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