Ever wonder why that promising new dish is bleeding money? You've launched what seemed like a winner, but orders are trickling in while ingredients pile up in the trash. These hidden waste costs can destroy your margins faster than you'd expect.
Why new dishes are often unprofitable
A dish that doesn't take off hits you with three distinct types of waste:
- Purchasing waste: You order too many ingredients
- Prep waste: You prep too much mise-en-place
- Date waste: Products expire
Your register doesn't show these costs directly, but they're quietly eating away at your bottom line.
Calculate your total waste costs
Getting a realistic picture requires three key figures:
💡 Example:
New dish: Asian salad (expected: 50 portions/week, actual: 15 portions/week)
- Purchased for 50 portions: €125
- Sold 15 portions: €37.50 in ingredients used
- Wasted: €87.50 per week
Waste percentage: 70%
Waste percentage formula:
((Purchased value - Used value) / Purchased value) × 100
Categorize your waste
All waste isn't created equal. Break it down into these categories:
- Date waste (40-60%): Products that expire
- Prep waste (20-30%): Too much prepared
- Portion waste (10-20%): Oversized portions during testing
⚠️ Note:
Date waste hits hardest. A kilo of premium ingredient that expires costs you the full purchase price.
Calculate the impact on an annual basis
Weekly waste costs might seem manageable, but they compound quickly:
💡 Example annual calculation:
Waste per week: €87.50
- Per month (4 weeks): €350
- Per year (50 working weeks): €4,375
This amount could fund another dish entirely
Deciding when to cut your losses
From tracking this across dozens of restaurants, these thresholds work well:
- Waste percentage above 50%: Time for adjustments
- Waste percentage above 70%: Stop or change drastically
- No improvement after 4 weeks: Remove from menu
Alternative strategies
Before scrapping a dish completely, try these approaches:
- Smaller orders: Order for 2-3 days instead of a week
- Flexible ingredients: Use ingredients that also work in other dishes
- Daily special: Make it a limited offer to create urgency
💡 Example flexible ingredients:
Asian salad with ingredients you also use for:
- Wok dishes (same vegetables)
- Sushi (same fish)
- Noodle soup (same spices)
This prevents ingredients from expiring unused
Recording and monitoring
Track what you're throwing away and why. This data helps with future dishes:
- Daily waste log
- Reason for waste (date, too much prep, etc.)
- Value of discarded product
Food cost calculators can track these figures and automatically calculate what waste costs you per dish.
How do you calculate waste costs? (step by step)
Add up all purchased ingredients
Calculate how much you ordered for the new dish over the past week. Add up all ingredients at purchase price. Including spices and garnish.
Calculate actual used value
Multiply the number of portions sold by the ingredient cost per portion. This is what you actually 'converted' into revenue.
Subtract and calculate percentage
Purchased value minus used value = waste in euros. Divide this by purchased value and multiply by 100 for the percentage.
Categorize the waste
Break it down into date waste, prep waste, and portion waste. This shows you where the biggest leaks are and what to tackle first.
Calculate impact on an annual basis
Multiply weekly waste by 50 working weeks. This gives you the total amount this dish costs you per year in waste.
✨ Pro tip
Track waste for new dishes in 3-day cycles rather than weekly. Record exactly what gets tossed and why - you'll spot patterns within 10 days and can pivot before losses mount.
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
At what waste percentage should I remove a dish from the menu?
With more than 70% waste after 4 weeks, it's wise to stop. Between 50-70%, you can still try adjustments like smaller orders or more flexible ingredients.
How do I prevent waste when testing new dishes?
Start small: buy ingredients for a maximum of 20 portions in the first week. Choose ingredients you can also use in other dishes. Test it as a daily special before adding it to the permanent menu.
Should I include waste costs in my dish cost?
Yes, factor in 5-15% waste as standard in your cost price. For new dishes this can be temporarily higher, but structurally you need to stay under 15% to be profitable.
What if my chef preps too much for a new dish?
Make clear agreements about prep quantities for new dishes. Start with prep for 1 day, not the whole week. Communicate daily how much was sold.
How do I calculate waste for dishes with expensive ingredients?
With premium ingredients (truffle, wagyu, fresh fish), every bit of waste is costly. Calculate per piece instead of per kilo and only order after reservations or pre-orders.
Can I repurpose ingredients from failed dishes?
Absolutely. Turn unused proteins into staff meals, blend aging vegetables into soups, or create limited-time specials. Fresh herbs can become oils or salts before they spoil.
📚 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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