Expanding without control over your numbers is a recipe for financial problems. Many entrepreneurs think they're ready for a second location, but have no idea what their dishes actually cost. Before you expand, you need to get your food cost and recipes watertight first - otherwise you're just multiplying your problems.
Why food cost control is crucial for expansion
If you expand without knowing what your dishes cost, you'll make the same mistakes in multiple places. A food cost of 38% instead of 30% means at €500,000 revenue per location, you're losing €40,000 in profit. With two locations: €80,000 per year.
⚠️ Watch out:
Many entrepreneurs think their current business is profitable, but have never calculated exactly what each dish costs. When you expand, these hidden losses hit twice as hard.
Step 1: Get your current food cost in order
Start with your 10 best-selling dishes. These make up 70-80% of your revenue. Calculate for each dish:
- Exact ingredient costs - including garnish, sauces, oil
- Actual portion sizes - weigh what actually goes on the plate
- Cutting waste - how much loss do you have during preparation?
- Food cost percentage - (ingredient costs / selling price excl. VAT) × 100
💡 Example:
Steak menu for €32.00 (incl. 9% VAT):
- Steak 200g: €6.40
- Vegetables: €1.20
- Potatoes: €0.80
- Sauce: €0.60
Selling price excl. VAT: €29.36
Food cost: (€9.00 / €29.36) × 100 = 30.7%
Step 2: Standardize your recipes
Without standardized recipes, you'll get inconsistency between locations. Each dish needs to be described exactly:
- Exact quantities - grams, milliliters, pieces
- Preparation method - temperature, time, techniques
- Presentation - how the plate looks
- Allergens - which of the 14 EU allergens it contains
Make sure every chef can make the same dish with the same taste and cost price.
💡 Example recipe:
Carbonara (1 portion):
- Pasta: 120g (cooked weight 240g)
- Bacon: 40g, fried crispy
- Egg: 1 whole + 1 yolk
- Parmesan: 25g, grated
- Black pepper: 2g, freshly ground
Cost price: €3.85 - Food cost at €16.50 excl. VAT: 23.3%
Step 3: Test your system with your current team
Before you expand, test whether your system works:
- Have different chefs make the same dish according to your recipe
- Weigh the portions - are they within 5% of each other?
- Taste - does everything taste the same?
- Calculate - does the cost price still add up?
If this isn't consistent in one kitchen, it'll be a disaster with multiple locations.
⚠️ Watch out:
Many entrepreneurs think their chef just knows. But if that chef leaves, all the knowledge is gone. Write everything down before you expand.
Digital tools make it easier
With an app like KitchenNmbrs, you can manage all your recipes centrally. Change an ingredient price, and all dishes are automatically recalculated. When you expand, every location has access to the same, up-to-date information.
Benefits of digital recipe management:
- Automatic cost price calculation
- Central updates for all locations
- Allergen information per dish
- HACCP records per location
💡 Example:
Your supplier raises beef prices by 15%. In a digital system:
- Update the purchase price once
- All dishes with beef are automatically recalculated
- Both locations immediately see the new cost prices
- You instantly know which menu prices need adjusting
When are you ready to expand?
You're only ready when you can answer:
- What does each dish cost me exactly?
- Which dishes generate the most profit?
- Can every chef make every dish identically?
- How quickly can I recalculate new prices?
If you don't have clear answers to these, wait before expanding. First get your house in order, then grow.
How do you get your food cost in order? (step by step)
Calculate cost price of your top 10 dishes
Add up all ingredient costs, including garnish and sauces. Weigh actual portions and factor in cutting waste. Calculate food cost: (ingredient costs / selling price excl. VAT) × 100.
Write out exact recipes
Note for each dish: exact quantities in grams/ml, preparation method with time and temperature, presentation instructions. Make sure every chef can achieve the same result.
Test consistency with your team
Have different chefs make the same dish according to your recipe. Weigh portions, taste the result, check cost price. Adjust recipes until everything is consistent.
✨ Pro tip
Start with one perfect dish. Calculate exactly what it costs, write out the recipe, and test it with different chefs. If this works, do the same with your other top performers. Perfection on a small scale prevents problems when you expand.
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
Do I need to calculate all dishes before expanding?
No, start with your 10 best-selling dishes. These make up 70-80% of your revenue. If these are solid, you've solved the biggest part of your problem.
How often should I update my cost prices?
Check your purchase prices monthly and adjust cost prices accordingly. Suppliers regularly raise prices. Without updates, you'll unknowingly lose profit.
Can't I just estimate what dishes cost?
Estimating leads to errors of 20-30%. When you expand, you multiply these errors. Exact calculation prevents you from unknowingly losing money on every portion.
What if my chef doesn't want to write down the recipes?
Explain that this is business capital. If the chef leaves, all the knowledge is gone. Standardized recipes protect your investment and make expansion possible.
What food cost percentage is good for expansion?
Keep your food cost under 32% for most concepts. When you expand, additional costs come in (management, transport). A lower food cost gives you more buffer for unexpected expenses.
📚 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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