Popular dishes with razor-thin margins create one of hospitality's trickiest challenges. They draw crowds but barely move your bottom line. You can't axe them without alienating guests, yet every sale chips away at potential profits.
What is a popular dish with low margins?
Menu engineers call this a 'plowhorse' - a dish that flies off the pass but generates minimal profit. Your customers adore it, but your accountant doesn't.
💡 Example:
Pasta carbonara - your bestseller:
- Selling price: €16.50 (€15.14 excl. VAT)
- Ingredient costs: €6.20
- Food cost: 41%
- Sold: 120x per week
Food cost's through the roof, but customers can't get enough.
Why this hurts your business
High food costs on volume dishes devastate overall profitability. Using our carbonara example, you're bleeding money weekly:
- Current margin per portion: €15.14 - €6.20 = €8.94
- At 30% food cost your margin would be: €15.14 - €4.54 = €10.60
- Lost opportunity: €1.66 per portion
- Weekly loss: 120 × €1.66 = €199
- Annual impact: €10,348 in missed profit
⚠️ Note:
Scrapping it isn't viable - this dish drives foot traffic. The goal is boosting profitability while maintaining its appeal.
Strategy 1: Trim ingredient costs
Scrutinize your recipe and supply chain ruthlessly:
- Audit portion sizes: Serving too generously? Reducing bacon by 10 grams saves €0.40 per plate
- Shop suppliers: Alternative vendors often offer 15-20% savings
- Time purchases strategically: Eggs cost less during winter months
- Rethink garnishes: Swap pricey microgreens for fresh parsley
Strategy 2: Nudge prices upward (strategically)
Even modest increases create substantial impact. From tracking this across dozens of restaurants, a €1 bump often goes unnoticed by diners.
💡 Example calculation:
Carbonara from €16.50 to €17.50:
- New price excl. VAT: €16.06
- Revised food cost: €6.20 / €16.06 = 38.6%
- Additional margin per portion: €0.92
- Weekly boost: 120 × €0.92 = €110
€1 increase = €5,720 extra profit annually
Test incrementally. Start with €0.50 increases and watch sales patterns. Most guests won't balk at reasonable adjustments.
Strategy 3: Master bundling and upselling
Transform basic orders into profitable experiences through strategic additions:
- Promote add-ons: Extra bacon (+€2.50), truffle oil (+€1.50)
- Pair with drinks: White wine carries 75% margins
- Push appetizers: Burrata typically delivers superior margins
- Design combo deals: Bundle with high-margin desserts
Strategy 4: Deploy menu psychology
Guide customers toward profitable choices without being obvious:
- Strategic placement: Position profitable dishes prominently
- Enhance descriptions: Make alternative pastas sound irresistible
- Feature daily specials: Highlight profitable options as 'chef's recommendations'
- Offer size variations: Smaller lunch portions at reduced prices
💡 Example menu restructure:
Instead of single carbonara option (low margin):
- Carbonara Classico: €16.50 (original recipe)
- Carbonara Deluxe: €19.50 (truffle upgrade, better margins)
- Cacio e Pepe: €15.50 (simpler ingredients, higher profitability)
Customers feel empowered by choice while you steer toward profitability.
The multi-pronged approach
Maximum results come from combining tactics:
- Reduce ingredient costs by €0.50
- Increase price by €1.00
- Push add-ons and upsells
- Apply menu psychology principles
This combination can slash food costs from 41% to 30% while preserving the dish. You maintain customer loyalty and dramatically boost profitability.
How do you tackle a popular dish with low margins?
Analyze the current situation
Calculate exactly what the dish costs and how often it's sold. Add up all ingredients, including garnish and sauces. Calculate the food cost percentage and total impact on your profitability.
Choose your strategy approach
Decide whether you want to lower costs, raise price, or both. Look at your competition and target audience. A combination of small adjustments often works best.
Test and monitor results
Implement changes gradually and track sales figures. Measure whether popularity decreases with price increases. Adjust where needed and optimize step by step.
✨ Pro tip
Limit price increases to maximum 2 dishes per month - customers spot patterns quickly. Stagger adjustments over 90-day cycles and pair with seasonal menu refreshes to mask changes.
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
Can I just make a popular dish more expensive?
Absolutely, but tread carefully. Bump prices in small increments (€0.50-€1.00) and monitor sales closely. Most customers won't notice modest increases, especially if you enhance the dish slightly.
What if customers abandon the dish after a price hike?
Start with minimal increases and track responses. If sales plummet, pivot to cost reduction through smarter sourcing, portion control, or ingredient substitutions. Pair this with aggressive upselling of sides and drinks.
How high can food costs go on popular dishes?
Very popular dishes can sustain 35-38% food costs, provided other menu items compensate with higher margins. Focus on overall menu profitability rather than individual dish performance.
Should I just remove the dish entirely?
Only as a nuclear option. Popular dishes drive traffic and customer loyalty. Exhaust all alternatives first: cost reduction, price increases, upselling strategies, and menu engineering tactics.
How do I track whether my changes are working?
Monitor weekly portion sales, food cost percentages, and total dish margins. Compare data before and after adjustments. Tools can automate these calculations and provide real-time insights.
What's the ideal timeline for implementing these changes?
Spread adjustments over 8-12 weeks to avoid shocking customers. Start with cost reductions, then modest price increases, followed by menu psychology tweaks. This gradual approach minimizes customer pushback while maximizing profit recovery.
📚 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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