Your menu prices determine whether you make or lose profit. Many restaurant owners set prices by gut feeling, but later discover they're losing money on popular...
Picture this: your pasta carbonara flies off the menu every night, but your bank account isn't growing. The problem? You priced it by instinct instead of math. Let me show you exactly how to check if your menu prices actually cover your ingredient costs.
The basics: calculating your food cost percentage
Your food cost percentage tells the whole story. It reveals exactly how much of each sale goes straight to paying for ingredients.
Formula:
Food cost % = (Ingredient costs / Selling price excl. VAT) × 100
⚠️ Important:
Always calculate with the price EXCLUDING VAT. Your menu price includes 9% VAT, so divide by 1.09 to get the price excl. VAT.
💡 Example:
You sell a pasta carbonara for €18.50 (incl. VAT).
- Selling price excl. VAT: €18.50 / 1.09 = €16.97
- Ingredient costs: €5.10
- Food cost: (€5.10 / €16.97) × 100 = 30.1%
This carbonara's making you money.
What are healthy food cost percentages?
Different dishes work with different margins. You can't expect the same percentage from a €12 salad and a €35 ribeye.
- Pasta dishes: 25-30%
- Meat dishes: 28-35%
- Fish dishes: 30-38%
- Salads: 20-28%
- Desserts: 15-25%
If your numbers sit above these ranges, that dish is bleeding money.
Focus on your top 5 dishes first
Don't overwhelm yourself checking every single menu item. Your 5 most popular dishes probably generate 80% of your revenue anyway.
💡 Example check:
Steak with fries - €32.00 incl. VAT
- Steak (200g): €6.40
- Fries (300g): €0.90
- Sauce and garnish: €1.20
- Total ingredients: €8.50
Selling price excl. VAT: €29.36
Food cost: 29.0% - Perfect!
Don't forget these hidden costs
Most restaurant owners miss the "small" stuff. But those tiny costs add up faster than you think:
- Oil and butter for frying and roasting
- Herbs and spices
- Sauces and dressings
- Garnish (parsley, lemon, etc.)
- Bread before the meal
These forgotten ingredients can bump your food cost by 2-4% per dish. And that's a pattern we see repeatedly in restaurant financials – owners calculate 28% food cost but they're actually running at 32%.
💡 Example impact:
Hidden costs that sneak up on you:
- Oil for frying: €0.15
- Butter on the plate: €0.20
- Herbs: €0.10
- Parsley garnish: €0.05
Total: €0.50 extra per plate = 1.7% higher food cost
Adjusting prices as costs change
Your food costs aren't frozen in time. Check them every 3 months minimum, because things change fast:
- Suppliers raise prices (happens 2-3 times per year)
- Seasonal products become more or less expensive
- Energy costs affect transport and storage
- Your chef gives larger portions than planned
⚠️ Important:
If your supplier raises prices by 15%, but you don't update your menu, your food cost jumps from 30% to 34.5%. That kills your profit margin fast.
Tools to make price checking easier
Manual calculations eat up precious time. Most restaurant owners pick one of these approaches:
- Excel spreadsheets - free but time-consuming
- Food cost calculators - automatic calculations save hours
- Pen and paper - simple but you'll make mistakes
The tool doesn't matter as much as using it consistently. A fancy system that sits unused won't boost your profits.
How do you check if your prices are right? (step by step)
Make a list of your 5 most popular dishes
Start by focusing on your best-selling dishes. These determine the largest part of your profit. Write down the current menu price for each dish.
Add up all ingredient costs per dish
Write down each ingredient with the quantity per portion and the purchase price. Don't forget oil, butter, herbs and garnish. Add everything together.
Calculate your food cost percentage
Divide your menu price by 1.09 to get the price excl. VAT. Then divide your ingredient costs by this price and multiply by 100 for the percentage.
Compare with healthy percentages
Check if your food cost stays below 35% (for most dishes). If you're higher, you need to raise your price or reduce your portions.
Plan a monthly check
Put it in your calendar to check your top 5 dishes every month. Suppliers adjust their prices and you need to keep up to stay profitable.
✨ Pro tip
Track your 3 biggest money-makers every 4 weeks. If their food costs stay under 33%, you've protected roughly 75% of your profit potential.
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 cost price calculation?
No, always calculate with prices EXCLUDING VAT. Your menu price includes 9% VAT, so divide by 1.09 to get the price excl. VAT. Otherwise your food cost will look artificially low.
What if my food cost is higher than 35%?
You're probably losing money on that dish. Raise your price, shrink your portion, or switch to cheaper ingredients. But first, double-check you've included all ingredient costs correctly.
How often should I check my prices?
Every 3 months minimum, but monthly is better for your top sellers. Suppliers bump their prices 2-3 times yearly, and you can't afford to lag behind those increases.
📚 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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