A smaller menu can save you thousands of euros per year through less waste, simpler purchasing and better focus on profitable dishes. Most restaurants carry too many dishes, which causes ingredients to spoil and makes kitchens work inefficiently. Here's exactly how to calculate what a more compact menu will bring you financially.
Why a smaller menu saves money
An extensive menu looks appealing, but it often costs more than it generates. More dishes mean more different ingredients to buy. And more ingredients mean greater chances of waste.
- Ingredients used only 1-2 times weekly spoil faster
- Your chef must remember more recipes and makes mistakes easier
- Slow-moving dishes create old inventory
- Complex purchasing means more time and errors
💡 Example:
Restaurant with 25 dishes vs. 15 dishes:
- 25 dishes: 180 different ingredients
- 15 dishes: 95 different ingredients
- Savings: 85 fewer ingredients to track
Result: 30-40% less waste through better turnover
Step 1: Measure your current waste per dish
Start tracking what gets thrown away per dish. Not all dishes waste equally. Dishes selling only 2-3 times weekly often cause the most waste.
Measuring waste:
- Note daily what goes in trash
- Connect this to specific dishes (which ingredients?)
- Measure for 2-3 weeks to spot patterns
- Convert waste into euros weekly
⚠️ Note:
Include 'invisible' waste too: ingredients expiring before use, or given to staff because they'll spoil otherwise.
Step 2: Analyze which dishes perform worst
Not every dish earns its menu spot. Calculate per dish how much it costs in waste, purchasing time and kitchen efficiency. Most kitchen managers discover too late that their 'specialty' dishes actually drain profits through hidden costs.
Formula for dish profitability:
Total costs = Ingredient costs + Waste costs + (Purchasing time × Hourly wage)
💡 Example: Dish sold 8 times per week
- Ingredient costs: €7.50 per portion
- Waste: €0.80 per sold portion (10% extra purchasing)
- Extra purchasing time: 15 min/week × €25/hour = €6.25
Total: €8.30 + €6.25/8 = €9.08 per portion
At selling price €24.00 (excl. VAT €22.02): food cost 41% - too high!
Step 3: Calculate savings from a smaller menu
Add up savings from removing least profitable dishes. Focus on dishes sold under 10 times weekly with food cost above 35%.
Calculating savings:
- Waste costs of removed dishes weekly
- Time savings on purchasing (fewer suppliers, fewer items)
- More efficient inventory (faster turnover of remaining ingredients)
- Fewer kitchen errors (chef knows menu better)
💡 Example: From 22 to 16 dishes
6 removed dishes saved weekly:
- Waste: €85 per week
- Purchasing time: 1.5 hours × €25 = €37.50
- More efficient inventory: €40 (less unnecessary stock)
Total yearly: (€85 + €37.50 + €40) × 50 weeks = €8,125
Step 4: Compensate for lost sales through better focus
You'll lose sales from removed dishes, but gain from better quality and lower costs of remaining ones. Plus: guests order faster with less choice.
Compensation effects:
- Better quality of remaining dishes (more focus)
- Faster service (less kitchen complexity)
- Higher turnover of popular dishes (always fresh ingredients)
- Less choice stress for guests
⚠️ Note:
Never remove more than 30% of your menu at once. Do it gradually over 2-3 months to see guest reactions.
Digital support for menu optimization
Tracking food cost per dish and waste costs requires lots of Excel work. A system like KitchenNmbrs helps you quickly see which dishes cost most and which bring in most.
With digital recipe registration, you immediately see menu changes' impact on total food cost and can calculate different scenarios before making final decisions.
How do you calculate the savings from a smaller menu?
Measure current waste per dish
Track for 2-3 weeks what gets thrown away per dish. Note daily which ingredients go in the trash and convert this to euros per week per dish.
Calculate total costs per dish
Add waste costs and purchasing time to ingredient costs. Dishes sold fewer than 10 times per week often cost more than you think due to inefficiency.
Select dishes to remove
Focus on dishes with food cost above 35% that sell poorly. Calculate how much you save per week on waste, purchasing time and inventory costs if you remove these.
Calculate savings on annual basis
Multiply your weekly savings by 50 working weeks. Subtract any lost sales, but don't forget to include positive effects like better quality and faster service.
✨ Pro tip
Track your 5 lowest-selling dishes for exactly 14 days and calculate their true cost including waste and purchasing time. You'll often find these dishes cost 15-20% more than you think.
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
How many dishes can I remove maximum without losing sales?
As a rule of thumb, you can usually remove dishes making up less than 5% of total sales without problems. These are often 20-30% of your dishes that together generate only 10-15% of revenue.
How do I know if a dish really sells poorly?
Measure sales figures for at least 4 weeks. A dish sold fewer than 8-10 times weekly in an average restaurant is usually a removal candidate, especially if it has unique ingredients.
What's the effect on my kitchen team?
A smaller menu means your chef can specialize in fewer dishes, improving quality. It also makes the kitchen calmer with fewer errors from mistakes or misunderstandings.
📚 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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