A financially sound menu ensures that every dish generates profit. Many restaurant owners estimate their prices, which causes them to unknowingly lose money on popular dishes. Learn step by step how to check if your menu is financially healthy.
Right now, that popular pasta dish might be costing you thousands without you knowing it. Many restaurant owners estimate their prices and unknowingly lose money on their bestsellers. Here's how to check if your menu is actually making you money.
Check your food cost per dish
Food cost is the percentage of your selling price that goes to ingredients. This is the most important figure to know if a dish is profitable.
💡 Example:
You sell a pasta carbonara for €16.50 (incl. 9% VAT):
- Selling price excl. VAT: €16.50 / 1.09 = €15.14
- Ingredient costs: €4.80
- Food cost: (€4.80 / €15.14) × 100 = 31.7%
This is a healthy food cost for pasta.
The formula is: Food cost % = (Ingredient costs / Selling price excl. VAT) × 100
⚠️ Note:
Always calculate with the price excluding VAT. The price on your menu includes 9% VAT. Many entrepreneurs forget this and think their food cost is lower than it actually is.
Benchmark your food cost percentages
A healthy food cost varies by type of dish and restaurant. Here are common guidelines:
- Meat and fish: 28-35%
- Pasta and pizza: 20-28%
- Salads: 25-32%
- Appetizers: 25-30%
- Desserts: 15-25%
If you exceed these percentages, you're probably losing money on that dish.
💡 Example calculation:
A 200-gram steak on your menu for €28.00:
- Selling price excl. VAT: €25.69
- Steak: €4.20
- Garnish and sauce: €1.80
- Total ingredient costs: €6.00
Food cost: (€6.00 / €25.69) × 100 = 23.4%
This is excellent for meat.
Check your best-selling dishes first
Start with your 5 most popular dishes. These have the biggest impact on your profit. If these are financially sound, you've already solved 80% of your problem.
Check for each dish:
- All ingredient costs (including garnish, sauce, butter)
- Current purchase prices from your supplier
- Actual portion sizes in the kitchen
- Trim loss on meat and fish
Most kitchen managers discover this too late: those tiny extras that seem free but aren't. The splash of olive oil, the pinch of sea salt, the herb garnish. They add up fast across hundreds of plates.
⚠️ Note:
Don't forget the 'invisible' ingredients: olive oil for cooking, butter on the plate, spices, salt. These seem small but add up at high volumes.
Check if your prices are still current
Suppliers regularly raise their prices, but many restaurants don't update their menu. Check at least every 6 months:
- Are your purchase prices still the same as 6 months ago?
- Which products have become more expensive?
- What impact does this have on your food cost?
💡 Impact example:
Your steak becomes 10% more expensive (from €21 to €23 per kilo):
- Extra cost per portion: €0.40
- At 20 steaks per week: €416 per year
- At 50 steaks per week: €1,040 per year
This justifies a price increase of €1-2 on your menu.
Analyze your menu mix
Not all dishes need to be equally profitable, but your overall mix needs to work. A good menu has:
- Stars: Popular and profitable (promote these!)
- Workhorses: Popular but less profitable (acceptable)
- Puzzles: Profitable but not popular (reposition)
- Dogs: Not popular and not profitable (remove)
Focus your marketing and recommendations on your 'stars'. This automatically increases your average profitability.
How do you check if your menu is financially sound?
Calculate the food cost of your 5 best-selling dishes
Add up all ingredient costs (including garnish and sauce). Divide this by your selling price excluding VAT and multiply by 100. Check that this stays under 35%.
Compare with common benchmarks for your type of dish
Meat and fish: 28-35%, pasta: 20-28%, salads: 25-32%. If you're well above, you need to raise your price or reduce your portion.
Check if your purchase prices are still current
Compare your current supplier invoices with those from 6 months ago. Price increases of 10-20% are common and require price adjustments.
Analyze which dishes are ordered most
Focus on dishes that are both popular and profitable. Promote these actively. Consider raising the price on unprofitable popular dishes.
Schedule regular checks
Check your food cost of top dishes every 3 months. Check every 6 months if supplier prices have risen. Adjust your menu where needed.
✨ Pro tip
Run the numbers on your 3 most expensive ingredients every 45 days. Premium items like wagyu beef or fresh truffles can swing 20-30% in price without warning, turning your profit margin upside down overnight.
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
Should I include VAT in my food cost calculation?
No, always calculate with the price excluding VAT. Your menu price of €20 becomes €18.35 excl. VAT (at 9%). Many entrepreneurs forget this and think their food cost is lower than it actually is.
What if my food cost exceeds 35%?
Then you're probably losing money on that dish. You can raise your price, reduce your portion, or use cheaper ingredients. A price increase of €2-3 can make a big difference.
How often should I update my menu prices?
Check every 6 months if your supplier prices have risen. Large price increases (>10%) usually justify an adjustment to your menu to remain profitable.
Does every dish need to be equally profitable?
No, you can have a few 'loss leaders' with lower margins. But compensate with profitable side dishes, drinks, or desserts. Your overall mix needs to work.
How do I calculate trim loss on meat and fish?
At 20% trim loss you have 80% yield. Your €20/kg meat actually costs €20 ÷ 0.80 = €25/kg. Use this higher price in your food cost calculation to get accurate numbers.
What's the difference between theoretical and actual food costs?
Theoretical food cost is based on recipes. Actual food cost includes waste, over-portioning, and theft. Most restaurants run 3-5% higher than theoretical costs due to kitchen realities.
📚 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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