Your margin determines whether you make money or lose it, but many entrepreneurs have no idea what their dishes actually cost. They estimate, rely on gut feeling, or avoid the numbers altogether because it takes so much time. In this article, you'll learn how to quickly and easily get a grip on your margin without spending hours in Excel.
Why estimating doesn't work
"My steak probably costs around €8 in ingredients, I think." You hear this often in kitchens. The problem: thinking is not knowing. And if you don't know what something costs, you can't set a good price.
⚠️ Watch out:
A €2 error per dish at 100 covers per day costs you €73,000 per year in lost profit.
The 3-minute margin check
You don't have to do all dishes at once. Start with your 3 best-selling dishes. They make up 60-70% of your revenue.
💡 Example:
Pasta carbonara (€18.50 on menu):
- Pasta: €0.45
- Bacon: €1.20
- Egg: €0.35
- Parmesan: €0.80
- Cream: €0.40
- Garnish: €0.30
Total: €3.50 ingredients on €16.97 excl. VAT = 20.6% food cost
Signs your margin is leaking
These signals point to margin problems:
- Full restaurant, but little profit: Your food cost is probably too high
- Chef gives different portions: No standard recipes means varying costs
- Prices haven't been adjusted in a long time: Suppliers raise prices regularly, you don't
- Lots of waste: Oversized portions or poor planning
The digital solution
Manual calculations take time and lead to errors. Digital tools like KitchenNmbrs automatically calculate your food cost as soon as you enter ingredients. You immediately see which dishes are profitable and which aren't.
💡 Example:
With an app you immediately see:
- Steak: 32% food cost (too high)
- Pasta: 21% food cost (great)
- Fish: 28% food cost (good)
Focus your attention on the steak: smaller portion or higher price?
Weekly margin check (10 minutes)
Make it a routine. Check the same numbers every week:
- Top 5 dishes: Food cost still under 35%?
- New supplier invoices: Prices gone up?
- Waste: What went in the trash and why?
These 10 minutes per week can save you thousands of euros per year.
⚠️ Watch out:
Always calculate with prices excl. VAT. The price on your menu (€18.50) should be divided by 1.09 for the actual selling price (€16.97).
From chaos to control
Getting a grip on your margin starts with knowing what your dishes cost. Not estimating, not hoping, but knowing. Start with your 3 top sellers, make it a routine, and use tools that do the work for you.
That way you'll gain more insight in a few weeks than colleagues who have been guessing for years.
How do you get a grip on your margin? (step by step)
Choose your 3 best-selling dishes
Focus first on the dishes that sell the most. These make up 60-70% of your revenue, so that's where the biggest impact is. Check your POS system or count for a week which dishes go over the counter most often.
Calculate the exact ingredient costs
Add up all ingredients: main product, garnish, sauces, oil, butter - everything that goes on the plate. Use your latest supplier invoices for prices. Calculate per portion, not per kilo.
Check your food cost percentage
Divide your ingredient costs by your selling price excl. VAT and multiply by 100. Is it above 35%? Then you're probably losing money on that dish. Adjust your portion or price.
✨ Pro tip
Check the food cost of your weekend top sellers every Monday morning. Weekends are often busier, so errors cost more money.
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 much time does it take to keep track of my margins?
With a digital tool like KitchenNmbrs: 10 minutes per week. Manually in Excel: 2-3 hours per week. The time savings are enormous.
What is a good food cost for restaurants?
Between 28% and 35% is standard for most restaurants. Pizzerias can go lower (20-28%), fine dining sometimes higher (up to 38%). It depends on your concept and competition.
Do I have to calculate all dishes at once?
No, start with your 5 best-selling dishes. Those determine your profit. If those are good, you've solved 80% of your problem.
How often should I adjust my prices?
Check your supplier invoices monthly for price changes. Adjust your menu price if your food cost goes above 35%. Small adjustments (€0.50) are less noticeable to guests than big jumps.
Can't I just estimate what dishes cost?
Estimating often goes wrong. A difference of €1 per dish at 50 portions per week costs you €2,600 per year. Exact numbers give you peace of mind and certainty.
📚 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.
Ready to get control of your food cost?
Thousands of hospitality professionals use KitchenNmbrs to protect their margins. No Excel, no paper — just one smart platform. Start your free trial today.
Start free trial →