Food cost thresholds help you immediately see when a dish becomes too expensive. Instead of discovering at the end of the month that your profit is leaking away, you get an alert as soon as food cost exceeds your limit. This way you can adjust immediately before it costs you a lot of money.
Why set thresholds?
Food cost fluctuates constantly. Suppliers raise prices, seasons change, and your chef sometimes uses just a bit more of an expensive ingredient. Without thresholds, you only notice at the end of the month that your margins have shrunk.
💡 Example:
Your bistro has set these thresholds:
- Appetizers: max 25% food cost
- Main courses: max 32% food cost
- Desserts: max 20% food cost
- Daily specials: max 28% food cost
As soon as a dish exceeds these percentages, you get a notification.
Determining thresholds per category
Not all dishes have the same margin requirements. An appetizer can have a lower food cost because guests pay less for it. A meat main course can be slightly higher.
- Appetizers: 20-25% (small portions, often high margin)
- Meat main courses: 28-35% (expensive ingredients)
- Fish main courses: 30-38% (fish can be expensive)
- Vegetarian main courses: 22-28% (cheaper ingredients)
- Desserts: 18-25% (often homemade, low cost)
- Daily specials: 25-30% (sharp pricing)
⚠️ Note:
These percentages are guidelines. Your own thresholds depend on your concept, price level, and local market. A fine dining restaurant can have higher food cost than a snack bar.
Thresholds in practice
Check your dishes against the thresholds weekly. You can do this manually in Excel, but digital systems like KitchenNmbrs automatically alert you when a dish exceeds the limit.
💡 Example alert:
Your salmon main course has a threshold of 35%. Due to a salmon price increase, food cost is now 37%.
Action: Raise the menu price by €2.50 or replace with a cheaper fish.
Seasonal adjustments
Adjust your thresholds per season. Asparagus is cheap in May, expensive in October. Set different limits for summer and winter menus.
- Summer season: Lower thresholds for vegetables and fruit
- Winter season: Higher thresholds for fresh produce
- Holidays: Temporarily higher limits for premium ingredients
What to do when exceeded?
When a dish exceeds the threshold, you have three options:
- Raise menu price: Most direct solution
- Adjust recipe: Cheaper ingredient or smaller portion
- Temporarily remove from menu: Until better purchasing options
💡 Calculation example:
Steak main course exceeds threshold of 32%:
- Current food cost: 36%
- Menu price: €28.00 (€25.69 excl. VAT)
- Ingredient costs: €9.25
New price for 32% food cost: €9.25 ÷ 0.32 = €28.91 excl. VAT = €31.50 incl. VAT
How do you set thresholds? (step by step)
Analyze your current food cost per category
Calculate the average food cost of your appetizers, main courses, and desserts. This becomes your starting point for realistic thresholds.
Set category-specific limits
Determine a maximum food cost percentage per dish category. Take into account your margins and the nature of the dishes (meat vs. vegetarian).
Check weekly and adjust
Check each week which dishes exceed the threshold. Raise the price, adjust the recipe, or temporarily remove it from the menu.
✨ Pro tip
Set your thresholds 2-3 percentage points lower than your absolute maximum. This gives you an early warning and time to adjust before you actually suffer losses.
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 a realistic threshold for main courses?
For most restaurants, a good threshold for main courses is between 28-35%. Meat and fish dishes can be at the higher end, vegetarian dishes can be lower.
Should I adjust thresholds per season?
Yes, definitely for dishes with seasonal products. Set lower limits during the season for certain vegetables or fruit, and higher limits when they're expensive.
What if a popular dish always exceeds the threshold?
Then you have three options: raise the menu price, adjust the recipe with cheaper ingredients, or accept that this dish yields less profit but attracts customers.
How often should I check thresholds?
Check at least weekly which dishes exceed the limit. With strong price fluctuations from suppliers, you can do this more frequently.
Can I have different thresholds for lunch and dinner?
Absolutely. Lunch often has sharper pricing, so lower thresholds. Dinner can have higher food cost because guests are willing to pay more.
📚 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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