Actions and specials can make or break your profit. Many entrepreneurs launch a 'happy hour' or '3-course menu for €25' without calculating what it actually delivers. The result: full tables but an empty till.
Why calculating matters so much
An action always feels good. More guests, more revenue, more buzz. But every euro discount you give has to come from somewhere else. And that's where things go sideways.
⚠️ Watch out:
A restaurant launched 'All you can eat' for €19.95. Their average food cost was €12 per person. They went bankrupt within 6 months.
The 5-minute calculation routine
For every action you're considering, work through these 5 steps. Takes 5 minutes, but saves you months of headaches.
💡 Example: 3-course menu for €35
You're considering a 3-course menu for €35 (incl. 9% VAT):
- Starter: food cost €3.20
- Main course: food cost €8.50
- Dessert: food cost €2.80
Total food cost: €14.50
Selling price excl. VAT: €35 / 1.09 = €32.11
Food cost percentage: (€14.50 / €32.11) × 100 = 45.2%
Step 1: Calculate the real food cost
Add up all the ingredients of what you're offering. Don't forget:
- Bread and butter with the starter
- Side dishes and sauces
- Coffee or tea after dessert
- Amuses or small surprises
Many actions fail because entrepreneurs only count the main ingredients.
Step 2: Check your margin per person
Calculate what you keep after ingredients:
Margin per person = Selling price excl. VAT - Food cost
💡 Example calculation:
3-course menu €35 incl. VAT:
- Selling price excl. VAT: €32.11
- Food cost: €14.50
- Margin: €32.11 - €14.50 = €17.61
From that €17.61 you still need to pay staff, rent, energy and other costs.
Step 3: Compare with your normal margin
What do you normally earn per guest? Check your average bill value and subtract your average food cost.
If your action gives less margin than normal, you need to attract more guests to earn the same.
⚠️ Watch out:
If your normal margin is €22 per guest and your action gives €17.61, you need 25% more guests to earn the same. Do you have that capacity?
Step 4: Calculate the break-even point
How many extra guests do you need to compensate for your lower margin?
Extra guests needed = (Normal margin - Action margin) / Action margin × 100%
💡 Practical example:
Situation:
- Normal margin per guest: €22
- Action margin per guest: €17.61
- Difference: €4.39 per guest
Extra guests needed: (€4.39 / €17.61) × 100% = 25%
If you normally have 100 guests per evening, you need 125 to earn the same.
Step 5: Check your operational capacity
The most important question: can you handle those extra guests? Based on real restaurant P&L data, capacity constraints kill more promotions than poor pricing.
- Enough tables and chairs?
- Can your kitchen handle the volume?
- Do you have enough staff?
- Does quality stay good?
If the answer is 'no', you earn less with your action.
When an action actually works
An action can be profitable if:
- You can spread your fixed costs over more guests
- You can fill quiet days
- Guests also order drinks (higher margin)
- It brings new customers who come back later
💡 Smart action:
A bistro did 'Monday pasta night' for €12.50. Food cost €4.20, margin €8.30. On Mondays they normally had 20 guests, with the action 45 guests. Result: from €440 to €373.50 revenue, but lower fixed costs per guest.
Tools that help
Manual calculations take time and you easily make mistakes. A system automatically calculates your food cost per dish and shows you what different scenarios deliver.
That way you see in 30 seconds if an action can be profitable, before you launch it.
How do you calculate an action? (step by step)
Calculate total food cost of the action
Add up all ingredients: main course, side dishes, sauces, bread, butter. Don't forget small things either like olive oil on the plate or coffee after dessert.
Determine your margin per person
Subtract the food cost from your selling price (excl. VAT). This amount needs to cover your fixed costs, staff and profit.
Compare with your normal margin
Check what you normally earn per guest. Calculate what percentage of extra guests you need to reach the same total.
Check your operational capacity
Can you handle those extra guests? Enough tables, kitchen capacity and staff? If not, you earn less despite more business.
Decide based on numbers
Only launch if the numbers work AND you can handle the extra business. If in doubt: test one evening first before you start a full campaign.
✨ Pro tip
Run your calculations every Tuesday morning for any specials launching that week. Set a 15-minute timer and work through all 5 steps before committing to anything.
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 every small action?
For actions that affect your normal prices, yes. A free glass of prosecco with dessert doesn't need it, but an 'all you can eat' absolutely does.
What if my food cost comes out above 40%?
Then you're probably losing money on the action. Adjust the composition, raise the price, or choose dishes with lower food cost.
How do I know if guests also order drinks?
Check your historical data. With actions, guests often order less drinks, which further reduces your margin. Calculate conservatively.
Can I ignore VAT when calculating?
No, always calculate with prices excluding VAT. Otherwise your margin looks higher than it is and you make wrong decisions.
What if I don't have time to calculate everything?
Then you already have your answer. If an action is important enough to launch, it's important enough to calculate. 5 minutes now saves months of losses.
How often should I update my food cost?
Check your ingredient prices at least monthly. Suppliers raise prices regularly, which can throw off your calculations.
Should I factor in labor costs when calculating specials?
For complex dishes that require extra prep time, absolutely. A 7-course tasting menu might have good food margins but destroy your labor efficiency.
📚 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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