Too many different dishes on your menu can undermine your profit without you realizing it. Each extra dish costs time, inventory and attention - but does it generate enough revenue? Most restaurant owners don't realize how much their oversized menu is costing them.
Why less is sometimes more
Many restaurant owners assume more choice equals more guests. But it often works the opposite way. Too many dishes create:
- Higher inventory costs (more ingredients that can spoil)
- Slower kitchen operations (chef has to remember more)
- Difficult purchasing (more suppliers, more orders)
- Lower revenue per dish (sales spread out)
⚠️ Watch out:
Dishes that make up less than 3% of your total sales often cost more than they generate. They tie up inventory and make your purchasing complex.
The 80/20 rule for menus
In most restaurants the 80/20 rule applies: 80% of your revenue comes from 20% of your dishes. This means a large chunk of your menu is actually dead weight.
💡 Example:
Restaurant with 20 dishes on the menu:
- Top 4 dishes: 80% of sales
- Remaining 16 dishes: 20% of sales
- Bottom 8 dishes: together less than 5%
Those last 8 dishes cost more than they generate.
Calculate your menu efficiency
For each dish on your menu you can calculate the menu efficiency. This gives you an objective number to decide which dishes stay and which go.
Menu efficiency formula:
Efficiency = (Number sold per week × Gross margin per dish) / Number of ingredients
💡 Example calculation:
Dish A: Salmon with vegetables
- Sold per week: 25 units
- Selling price excl. VAT: €22.02 (€24.00 incl. 9% VAT)
- Ingredient costs: €7.50
- Gross margin: €22.02 - €7.50 = €14.52
- Number of ingredients: 8
Efficiency: (25 × €14.52) / 8 = €45.38
💡 For comparison:
Dish B: Exotic curry
- Sold per week: 3 units
- Selling price excl. VAT: €18.35
- Ingredient costs: €6.20
- Gross margin: €12.15
- Number of ingredients: 12
Efficiency: (3 × €12.15) / 12 = €3.04
Spotting inefficient dishes
A dish is probably dragging you down if it meets one or more of these criteria:
- Low sales: Less than 5 units per week
- Many ingredients: More than 10 different ingredients
- High food cost: Above 35% of the selling price
- Short shelf life: Ingredients that spoil quickly
- Complex preparation: More than 30 minutes prep time
The hidden costs of too much variety
Each extra dish on your menu brings costs you don't see directly. From tracking this across dozens of restaurants, I've seen how these hidden expenses add up fast:
💡 Example: Hidden costs
A dish that sells 2× per week:
- Inventory costs: €50/month (ingredients in cold storage)
- Waste: €30/month (spoilage from low turnover)
- Extra ordering time: €40/month (more suppliers)
- Kitchen complexity: €25/month (more mise-en-place)
Total: €145/month extra costs for one poorly performing dish
Warning signs your menu is too broad
Watch for these red flags in your kitchen:
- You regularly throw away ingredients that have spoiled
- Your cold storage is packed with ingredients that barely get used
- Your chef regularly asks what to do with leftovers
- Guests often ask for dishes that aren't on the menu
- You struggle to deliver consistent quality
⚠️ Watch out:
If you have more than 25 main courses and run fewer than 100 covers per day, your menu is probably too broad. The golden rule: no more dishes than covers per day.
How to remove dishes without losing customers
Cutting dishes doesn't have to cost you customers if you do it smartly:
- Test first: Make dishes temporarily 'sold out' and see if guests leave
- Replace with variations: Instead of 3 fish dishes, make 1 with varying preparations
- Focus on seasons: Rotate dishes by season instead of offering everything at once
- Communicate positively: "Refreshed menu with our top picks" sounds better than "less choice"
A system like tools such as KitchenNmbrs helps you track how much you sell of each dish, what the margin is, and which ingredients you need. This way you can objectively decide which dishes stay and which go.
How do you analyze your menu efficiency? (step by step)
Collect sales data from 4 weeks
Note for each dish how much you've sold in the past 4 weeks. Also count how much you've given away for free or thrown away due to mistakes. This gives you a realistic picture of actual demand.
Calculate the gross margin per dish
Subtract the ingredient costs from the selling price (excl. VAT). This is your gross margin. Include all ingredients: also the garnish, sauce, oil and everything that goes on the plate. Don't forget cutting loss on fish and meat.
Rank dishes by weekly gross margin
For each dish multiply: number sold per week × gross margin per unit. Rank from high to low. The dishes at the bottom of the list are candidates for removal, especially if they also have many ingredients or are complex to prepare.
✨ Pro tip
Track your bottom 10 dishes for 6 weeks and calculate their true profitability including waste and prep time. You'll likely find 3-4 that are actually losing you money every month.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
Was this article helpful?
Frequently asked questions
How many dishes should I have maximum on my menu?
A good rule of thumb: no more main courses than your average number of covers per day. With 50 guests per day, so a maximum of 50 main courses. In practice, most successful restaurants have 15-25 main courses.
What if a dish sells poorly but has high margin?
Look at the total weekly gross margin (number sold × margin per unit). A dish with high margin but low sales often generates less than a dish with lower margin but high sales. Also factor in hidden costs: inventory, waste, complexity.
How often should I analyze my menu?
Analyze your menu at least every 3 months. After seasonal changes, supplier price changes, or if you notice inventory isn't rotating well. Pay special attention to dishes that suddenly sell much less.
What if customers ask for a removed dish?
Note how many customers ask for it. If it's less than 1 in 20 guests, removing it was the right choice. You can always say it was seasonal or that you have a similar alternative.
Should I consider allergens when removing dishes?
Yes, check that you still have enough options for guests with allergies. Make sure you have at least 2-3 gluten-free options and 2-3 vegetarian ones. Don't remove your only vegan dish if you have a diverse customer base.
How do I communicate menu changes to my team?
Explain why dishes are being removed: focus on quality and fresh ingredients. Train your team on the new menu and give them alternatives they can suggest. Create a cheat sheet with similar dishes for when guests ask about old options.
What's the minimum sales volume before I should cut a dish?
If a dish sells fewer than 8 times per month, it's usually costing you money. Factor in prep time, ingredient waste, and storage costs. Dishes selling less than twice per week rarely justify their menu space.
📚 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.
Calculate it yourself with KitchenNmbrs
All the formulas you learn here — KitchenNmbrs calculates them automatically. Enter your ingredients and instantly see your food cost, margin, and selling price. Try it free for 14 days.
Start free trial →