How do you figure out if your nose-to-tail concept is actually making money? These sustainable approaches can dramatically boost your margin by using every part of the product. But margin calculation becomes tricky because you're creating multiple products with different values from a single purchase.
Why traditional margin calculation doesn't work
With a normal dish you buy ingredients and make one product. With nose-to-tail or whole-plant you use one purchase for multiple products with different selling prices. A whole fish becomes fillet, broth and liver pâté. A whole vegetable becomes main course, chips and pesto.
💡 Example whole fish:
You buy a sea bass of 2 kg for €36.00
- Fillets (800g): 4 portions at €28.00 = €112.00
- Broth (carcasses): 20 portions of soup at €8.50 = €170.00
- Cheeks: 8 portions at €12.00 = €96.00
Total revenue: €378.00 from €36.00 purchase
Step 1: Divide your purchase costs proportionally
You must divide the €36.00 purchase price across all products proportional to their sales value. This is called proportional cost allocation.
💡 Cost allocation calculation:
- Fillets: (€112 / €378) × €36 = €10.67
- Broth: (€170 / €378) × €36 = €16.19
- Cheeks: (€96 / €378) × €36 = €9.14
Check: €10.67 + €16.19 + €9.14 = €36.00 ✓
Step 2: Calculate food cost per product
Now you can calculate the food cost separately for each product. Also add other ingredients (vegetables, herbs, oil).
- Fillet: €10.67 fish + €2.50 garnish = €13.17 per 4 portions = €3.29 per portion
- Broth: €16.19 fish + €4.80 vegetables = €21.00 per 20 portions = €1.05 per portion
- Cheeks: €9.14 fish + €1.80 sauce = €10.94 per 8 portions = €1.37 per portion
⚠️ Note:
Always calculate with selling prices excluding VAT. €28.00 incl. 9% VAT = €25.69 excl. VAT for the food cost calculation.
Step 3: Check your total margin
Calculate your total margin across all products from that one purchase. This gives you the real picture of your concept.
💡 Total margin calculation:
- Total revenue: €378.00
- Total costs: €36.00 fish + €9.10 other = €45.10
- Profit: €378.00 - €45.10 = €332.90
- Margin: (€332.90 / €378.00) × 100 = 88.1%
Food cost: only 11.9% - much lower than typical 30%!
Where nose-to-tail goes wrong
Many kitchens make these costly mistakes that cause them to underestimate their margin. I've seen restaurants lose €200-400 per month by not properly tracking their by-product value - they'll sell the main cuts but let valuable bones and trimmings go to waste instead of turning them into profitable soups or stocks.
- Only counting main product: You only account for the fillet, not the broth and cheeks
- All costs on main product: You charge the entire €36.00 only against the fillets
- Not selling by-products: The carcasses go to waste instead of becoming broth
- No systematic tracking: You don't track how much you actually get from one product
Practical tips for better control
To make your nose-to-tail concept more profitable:
- Track what you get: Record how many portions you make from each whole fish/vegetable
- Price by-products well: Soup from carcasses can easily be €8.50 - it's pure profit
- Train your team: Everyone should know that "waste" is money
- Plan your purchasing: Only buy whole products if you can sell all parts
💡 Whole-plant example:
Whole cauliflower (2 kg) for €4.50:
- Florets: 6 main courses at €16.00
- Stem: 12 portions of soup at €7.50
- Leaves: 20 portions of chips at €3.50
Total: €256.50 from €4.50 = 98.2% margin!
Digital help with complex calculations
These calculations are complex to track manually. A system can help by:
- Automatically distributing costs across multiple products
- Calculating food cost per by-product
- Tracking how much you actually get from one purchase
- Alerting you if by-products aren't being sold
How do you calculate nose-to-tail margin? (step by step)
Inventory all products from your purchase
Write down which dishes you make from one whole fish/vegetable and what you charge for them. Also include by-products like broth, chips or pâté. Don't forget any part you can sell.
Divide purchase costs proportional to sales value
Calculate what percentage each product makes up of your total revenue. Multiply this percentage by your purchase price to get the costs per product. Check that all costs add up to your original purchase price.
Calculate food cost per individual product
Add all other ingredients to the allocated purchase costs (herbs, oil, vegetables). Divide this by the number of portions for the cost per portion. Then calculate your food cost percentage per product.
✨ Pro tip
Track your yield percentages for 30 days on each whole product you break down. Most chefs overestimate how many portions they'll get from bones and scraps, leading to inflated margin calculations.
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 if I don't sell all by-products?
Then your calculation no longer works. Only calculate with products you actually sell. Unsold parts are just waste and cost you money.
How do I prevent by-products from spoiling?
Plan your menu strategically. Process by-products immediately into shelf-stable products like broth, pesto or chips. Freeze in portions or sell as daily special.
Is nose-to-tail always more profitable?
Only if you can sell all parts at a good price. If by-products are hard to sell or require a lot of extra work, traditional purchasing can sometimes make more sense.
📚 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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