Nearly 40% of restaurants fail because their most popular dishes aren't profitable enough. You might sell hundreds of your signature burger each week, but if the margin is too thin, you're working for nothing. Here's how to fix that blind spot.
Nearly 40% of restaurants fail because their most popular dishes aren't profitable enough. You might sell hundreds of your signature burger each week, but if the margin is too thin, you're working for nothing. Here's how to fix that blind spot.
What are bestsellers and why are they so important?
Bestsellers are your best-selling dishes. Often 20% of your menu that generates 80% of your revenue. Think of your signature burger, the pasta everyone orders, or that pizza you're known for.
The problem: many entrepreneurs think that popular automatically means profitable. But if you're making too little margin on your bestsellers, your whole business is running for nothing.
⚠️ Watch out:
A bestseller with 5% too low margin can cost you thousands of euros per year. At 100 portions per week that's quickly €2,600 in lost profit.
How do you identify your bestsellers?
Look at your POS system from the past month:
- Which 5 dishes do you sell most often?
- Which dishes generate the most revenue?
- Which dishes do guests order first?
- Which dishes are returned least often?
These are probably your bestsellers. Focus your analysis on these — if these are solid, you've solved 80% of your problem.
Calculate the food cost of your bestsellers
For each of your bestsellers you need:
- All ingredient costs per portion
- Selling price excluding 9% VAT
- Number of sales per week
💡 Example: Pasta Carbonara
Menu price: €18.50 incl. VAT
- Pasta: €0.45
- Bacon: €1.20
- Eggs: €0.80
- Parmesan: €1.10
- Cream: €0.35
- Other (oil, spices): €0.20
Ingredient costs: €4.10
Selling price excl. VAT: €18.50 / 1.09 = €16.97
Food cost: (€4.10 / €16.97) × 100 = 24.2%
The formula: Food cost % = (Ingredient costs / Selling price excl. VAT) × 100
What is a good margin for bestsellers?
Bestsellers follow different rules than specialties:
- Ideal: 25-30% food cost
- Acceptable: 30-33% food cost
- Too high: above 35% food cost
Why can bestsellers have a slightly lower margin?
- You sell a lot of them (volume compensates)
- They draw customers in
- Guests often order drinks and dessert with them
- Lower labor costs due to routine
💡 Example: Impact of 2% difference
You sell 150 pastas per week at €16.97 excl. VAT
Difference between 28% and 30% food cost = 2 percentage points
Per week: 150 × €16.97 × 0.02 = €50.91
Per year: €2,647 difference!
Check the total profit contribution
Food cost isn't everything. Also calculate the absolute profit contribution per dish. This is one of the most common blind spots in kitchen management — owners get fixated on percentages but forget about actual euros in the bank.
Profit contribution = (Selling price excl. VAT - Ingredient costs) × Number of sales
💡 Example: Comparing two bestsellers
Dish A: 28% food cost, 100 sales/week
- Profit per portion: €20.00 - €5.60 = €14.40
- Total profit/week: €1,440
Dish B: 32% food cost, 200 sales/week
- Profit per portion: €15.00 - €4.80 = €10.20
- Total profit/week: €2,040
Dish B has higher food cost but generates more total profit!
Signs that your margin is too low
Watch for these warning signals:
- Food cost above 35% on bestsellers
- Profit contribution per portion below €8
- Total restaurant food cost above 32%
- Suppliers raised prices but you didn't
- Portion sizes have grown without price adjustment
⚠️ Watch out:
Check your bestsellers every month. Suppliers regularly raise prices, but many entrepreneurs don't update their menu. This way your margin erodes unnoticed.
What to do if your margin is too low?
You have four options:
- Raise the price: Often the smartest move, but do it gradually
- Reduce portion size: Less noticeable to guests
- Use cheaper ingredients: But watch the quality
- Adjust the recipe: Fewer expensive ingredients, more filler
Start with a price increase. Most guests accept 5-10% increase on their favorite dish, especially if quality stays good.
Keep an eye on your bestsellers with a system
Manual calculations take a lot of time. A food cost calculator automatically tracks your margins per dish and shows which bestsellers aren't delivering enough. You immediately see which dishes need attention.
How do you check the margin on your bestsellers? (step by step)
Identify your top 5 bestsellers
Look in your POS system for the most sold dishes from last month. Note for each dish: name, selling price and number of sales per week.
Calculate the exact ingredient costs
Add up all costs: main ingredients, garnish, sauces, oil, spices. Don't forget anything that goes on the plate. Use current purchase prices from your suppliers.
Calculate food cost percentage per bestseller
Divide ingredient costs by selling price excl. VAT and multiply by 100. Aim for 25-33% for bestsellers. Above 35% is too high.
Calculate total profit contribution per week
Subtract ingredient costs from selling price excl. VAT and multiply by number of sales. This shows which bestseller generates the most profit.
Plan action for bestsellers with too low margin
If food cost is above 35%: consider a 5-10% price increase or smaller portions. Test one change at a time and monitor sales figures.
✨ Pro tip
Track your #1 bestseller's margin weekly for 8 weeks straight. You'll spot profit leaks from portion creep or supplier price hikes before they cost you hundreds.
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
Can a bestseller have a higher food cost than other dishes?
Yes, up to 33% is acceptable for bestsellers. They compensate with volume and draw in customers who also order drinks and side dishes.
How often should I check the margin on my bestsellers?
At least every month. Suppliers regularly raise prices and you don't want to run with too low margins for months.
What if my bestseller has 40% food cost but is very popular?
Then you're losing money on every plate. Gradually raise the price by 5% at a time until you're under 33% food cost.
Is it better to raise the price or reduce the portion?
Price increase is more honest to guests. Smaller portions feel like cheating. Test a 5-10% price increase first.
What if guests stop coming after a price increase?
Monitor for 2-3 weeks. Often it's not as bad as you think. Better to have 10% fewer sales with healthy margin than lots of sales without profit.
Should I calculate with price including or excluding VAT?
Always excluding VAT. For restaurants that's 9%. So €21.80 incl. VAT becomes €21.80 / 1.09 = €20.00 excl. VAT.
What's the minimum profit per portion I should aim for on bestsellers?
Aim for at least €8-10 profit per portion on your top dishes. Below €6 and you're barely covering labor and overhead costs.
📚 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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