Your food cost determines whether you make or lose money on each dish. Many restaurant owners have no clear limit and let their profit leak away without noticing. Today you'll set a hard limit that prevents you from unknowingly running losses.
Why you need a hard limit
Without a clear limit, you're working blind. Your chef makes delicious dishes, guests are happy, but your profit disappears. A fixed food cost limit gives you instant insight: am I making enough money on this dish?
⚠️ Watch out:
Many entrepreneurs think: "If my place is full, I'll make money." That's not true. A full restaurant with too high food cost can still run losses.
The 35% rule as a starting point
For most restaurants, 35% food cost is the absolute maximum limit. Above this limit, it becomes difficult to stay profitable after all other costs (staff, rent, energy).
- Under 30%: Healthy margin, room for unexpected costs
- 30-35%: Acceptable, but little buffer
- Above 35%: Risk of losses, immediate action needed
💡 Example calculation:
Pasta carbonara on your menu for €18.50 (incl. 9% VAT)
- Sale price excl. VAT: €18.50 ÷ 1.09 = €16.97
- Maximum ingredient costs at 35%: €16.97 × 0.35 = €5.94
If your ingredients cost more than €5.94, you exceed the limit.
Calculate your personal limit per dish
The 35% rule is a starting point. For each dish you calculate the exact limit in euros. This way you know immediately if a dish stays within the margin.
Formula: Maximum ingredient costs = Sale price excl. VAT × 0.35
💡 Examples for different price ranges:
- €15.00 incl. VAT → €13.76 excl. → max €4.82 ingredients
- €22.00 incl. VAT → €20.18 excl. → max €7.06 ingredients
- €28.00 incl. VAT → €25.69 excl. → max €8.99 ingredients
- €35.00 incl. VAT → €32.11 excl. → max €11.24 ingredients
Write down your limits and post them
Make a list of your best-selling dishes with their food cost limit in euros. Hang this in the kitchen where everyone can see it. This way your chef also knows where the limits are.
- Use a whiteboard or laminate a list
- Update monthly when prices change
- Discuss with your chef why these limits are important
⚠️ Watch out:
Always calculate excl. VAT. The price on your menu is incl. VAT, but for food cost you always calculate excluding VAT.
Check your top 5 weekly
You don't need to check every dish daily. Focus on your 5 best-selling dishes. These determine 80% of your profit or loss.
💡 Practical check:
Every Monday morning check these 5 dishes:
- Add up all ingredient costs
- Compare with your set limit
- Above the limit? Take immediate action
What do you do if you exceed the limit?
If a dish goes above your 35% limit, you have three options:
- Raise the price: Simplest, but check if the market accepts it
- Reduce portion size: Less visible to the guest, but less value
- Find cheaper ingredients: Be careful that quality doesn't suffer
Choose the option that best fits your business and target audience. Sometimes a combination is best: slightly smaller portion and slightly higher price.
How do you set your food cost limits today?
Make a list of your top 10 dishes
Grab your POS system or write down from memory which 10 dishes sell the most. Focus on these first, because that's where your biggest impact is.
Calculate the 35% limit per dish
For each dish: divide the menu price by 1.09 (for 9% VAT), then multiply by 0.35. This is your maximum ingredient budget in euros.
Add up the actual ingredient costs
Go through each dish: all ingredients, garnishes, sauces, oil, butter. Add up everything that goes on the plate. Don't forget anything.
Compare and mark overages
Put actual costs next to your limit. Dishes that exceed 35% get a red mark - these are costing you money.
Hang your limits list in the kitchen
Make a clear list with dish name and maximum ingredient costs. Hang this where your chef can see it, so everyone knows the limits.
✨ Pro tip
Check your 5 best-selling dishes every Monday morning. Add up the ingredient costs and compare with your limit. These 10 minutes can save you hundreds of euros per month.
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 really have to use 35% as a limit, or can it be higher?
35% is a safe upper limit for most restaurants. At higher food cost it becomes difficult to still make a profit after all other costs (staff, rent, energy). Start with 35% and adjust as you gain more experience.
What if my best dish exceeds the 35% limit?
Then you have three choices: raise the price, reduce the portion, or find cheaper ingredients. First check if a small price increase is possible - often guests don't even notice a €1-2 difference.
Should I also include beverages in this calculation?
No, beverages usually have much lower food cost (5-15%) and often compensate for higher food cost of dishes. Calculate beverages separately, focus first on your main courses.
How often should I update my limits?
Check monthly whether suppliers have raised their prices. If ingredient prices go up but your menu prices don't, you automatically exceed your limits.
What do I do with seasonal products that are sometimes more expensive?
Make a distinction between winter and summer prices. Calculate two limits or adjust your menu seasonally. Many restaurants raise prices in winter when vegetables are more expensive.
Can I use different limits for different types of dishes?
Yes, that's actually smart. Appetizers and desserts can often have 25-30% food cost, main courses 30-35%. Meat and fish dishes usually sit at the top of this range.
📚 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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