📝 Cost reduction & efficiency · ⏱️ 3 min read

How do I calculate which dishes on my menu have the...

📝 KitchenNmbrs · updated 07 Apr 2026

Quick answer
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%.

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.

How do you calculate food cost per dish? (step by step)

1

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.

2

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.

3

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.

4

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.

5

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.

Try KitchenNmbrs free →

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Frequently asked questions

What is an acceptable food cost percentage?
Restaurant food costs typically run 28-35%. Below 25% is exceptional, above 35% usually means you're losing money on that dish.
Do I really need to include all ingredients in the calculation?
Absolutely - small costs add up fast. That €0.15 splash of olive oil per plate costs you €780 yearly at 100 plates weekly.
How often should I check my food cost?
Review food costs every 3 months minimum, or immediately after supplier price hikes. Ingredient prices shift constantly.
What if my best-selling dish has the highest food cost?
That's a competing platformggest problem and biggest opportunity rolled into one. Bump the price €1-2 or trim portions slightly - customers won't notice much on popular items.
Can't I just estimate which dishes are expensive?
Estimates fail miserably. That simple pasta might cost more than expected due to pricey cheese, while your steak could be cheaper through smart sourcing.
Should I remove high food cost dishes immediately?
Not necessarily. If a dish sells well despite high food costs, adjust pricing or portions first. Only remove dishes that combine high costs with low sales volume.
ℹ️ This article was prepared based on official sources and professional expertise. While we strive for current and accurate information, the content may differ from the most recent regulations. Always consult the official authorities for binding standards.

Sources consulted

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.

JS

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.

8 years kitchen manager at 1NUL8 Group Rotterdam
Expertise: food cost management HACCP kitchen management restaurant operations food safety compliance

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