Ever wonder why some dishes feel like money-makers while others drain your profits? Food costs swing wildly across your menu - that innocent pasta might hit 25% while your signature steak bleeds 40%. Calculate every dish systematically and you'll spot exactly where profits leak out.
Gather all recipes and ingredient costs
Begin with your top 10 sellers. Each dish requires:
- Precise quantities for every ingredient
- Current purchase prices per kilo/liter
- Include garnishes, sauces, oil and butter too
- Menu price of the dish
? Example:
Pasta carbonara (1 portion):
- Pasta: 120g × €2.50/kg = €0.30
- Bacon: 80g × €12.00/kg = €0.96
- Egg: 1 piece × €0.25 = €0.25
- Parmesan: 30g × €18.00/kg = €0.54
- Cream: 50ml × €3.20/liter = €0.16
- Other (oil, pepper): €0.15
Total ingredient costs: €2.36
Calculate the food cost percentage per dish
Use this formula for each dish:
Food cost % = (Ingredient costs / Selling price excl. VAT) × 100
Remember: your menu price includes 9% VAT. Calculate the price excluding VAT first by dividing by 1.09.
? Example calculation:
Pasta carbonara selling price: €16.50 incl. VAT
- Excl. VAT: €16.50 / 1.09 = €15.14
- Ingredient costs: €2.36
- Food cost: (€2.36 / €15.14) × 100 = 15.6%
That's a fantastic food cost - this dish prints money.
⚠️ Watch out:
Many restaurant owners mistakenly calculate using VAT-inclusive prices. This makes food costs appear lower than reality. Always use VAT-exclusive prices for accurate comparisons.
Create an overview from high to low
List all dishes by food cost percentage, highest first. You'll instantly spot your problem children.
? Example overview:
- Salmon fillet: 42% food cost ← danger zone
- Steak: 38% food cost ← needs fixing
- Caesar salad: 35% food cost ← borderline
- Risotto: 28% food cost ← solid
- Pasta carbonara: 16% food cost ← goldmine
Dishes hitting 35%+ food cost need immediate attention. That's where your profits vanish, especially on popular items. I've seen this mistake cost the average restaurant EUR 200-400 per month in lost earnings.
Focus on your best-selling problem dishes
High food cost hurts most on dishes you sell frequently. A 40% steak sold 5 times weekly? Annoying. A 36% pasta sold 50 times weekly? Devastating.
Calculate yearly impact:
Annual impact = (Actual food cost - Target food cost) × Selling price excl. VAT × Annual sales volume
? Impact calculation:
Caesar salad: 35% food cost, sold 40 times weekly
- Selling price: €18.50 incl. VAT = €16.97 excl. VAT
- Excess food cost: 35% - 30% = 5 percentage points
- Lost profit per portion: 0.05 × €16.97 = €0.85
- Yearly loss: €0.85 × 40 × 52 = €1,768
This single dish bleeds €1,768 annually in lost profit.
What to do with dishes with high food cost
You've got four moves for expensive dishes:
- Increase the price: Usually your best bet for popular dishes
- Shrink the portion: Less ingredients = lower costs
- Swap ingredients: Find cheaper alternatives that work
- Cut from menu: Nuclear option for unprofitable duds
Food cost calculators like KitchenNmbrs automatically crunch these numbers for your entire menu, showing exactly what needs adjusting.
Related articles
How do you calculate food cost per dish? (step by step)
Gather recipes and prices
Make a list of your 10 best-selling dishes. For each dish, note all ingredients with exact quantities and current purchase prices from your suppliers.
Calculate ingredient costs per portion
Add up all ingredient costs for each dish. Don't forget garnishes, sauces, oil and butter - they cost money too.
Calculate food cost percentage
Divide the ingredient costs by the selling price excluding VAT and multiply by 100. You must first divide the menu price by 1.09 to remove the VAT.
Rank from high to low
Put all dishes in order from highest to lowest food cost. Dishes above 35% deserve extra attention, especially if they're popular items.
Calculate annual impact
For your problem dishes: calculate how much profit you're losing per year due to high food cost. Multiply the difference by the number of times you sell it.
✨ Pro tip
Track food costs on your 8 highest-volume dishes over the next 30 days. Fix these profit-drainers first and you'll solve 75% of your food cost problems immediately.
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
What is an acceptable food cost percentage?
Do I really need to include all ingredients in the calculation?
How often should I check my food cost?
What if my best-selling dish has the highest food cost?
Can't I just estimate which dishes are expensive?
Should I remove high food cost dishes immediately?
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
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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