Repricing based on current food costs prevents you from losing money without realizing it. Suppliers regularly raise their prices, but many restaurant owners don't adjust their menus in time. The result: your food cost creeps up from 30% to 40% without you noticing, and your profit disappears.
Collect the current food costs of all ingredients
Start by updating your ingredient prices. Check your latest supplier invoices and note the current purchase prices per kilo, liter, or unit.
💡 Example:
Entrecote beef per kilo:
- January 2024: €28.50/kg
- Now (March 2024): €32.80/kg
- Increase: 15.1%
Impact: each 200g portion now costs €0.86 more
Go systematically through your inventory and update at least your top 20 ingredients. These are often meat, fish, olive oil, butter, and vegetables that you use frequently.
Calculate the new food cost per dish
Add up all ingredient costs for each dish based on the new prices. Don't forget the garnishes, sauces, and oil that go on the plate.
💡 Example food cost for beef steak:
Ingredients per portion:
- Entrecote 200g: €6.56 (was €5.70)
- Potatoes 150g: €0.45
- Vegetable mix: €1.20
- Butter/oil: €0.35
- Spices/salt: €0.15
New food cost: €8.71 (was €7.85)
Use the formula: Food cost = sum of all ingredients per portion. Calculate with the exact quantities your chef uses, not what the recipe says.
Calculate the new food cost percentage
Divide the new food cost by your current selling price (excluding VAT) and multiply by 100 for the percentage.
Formula: Food cost % = (Food cost / Selling price excl. VAT) × 100
💡 Example calculation:
Beef steak on menu: €32.00 incl. 9% VAT
- Selling price excl. VAT: €32.00 / 1.09 = €29.36
- New food cost: €8.71
- New food cost: (€8.71 / €29.36) × 100 = 29.7%
Was: (€7.85 / €29.36) × 100 = 26.7%
⚠️ Note:
Always calculate with the price excluding VAT. The price on your menu includes 9% VAT for food.
Determine which dishes need repricing
Make a list of dishes where the food cost is above 35%. These are likely costing you money.
- 25-30%: Healthy margin, keep it as is
- 30-35%: Acceptable, keep an eye on it
- 35-40%: Reprice or lower food cost
- 40%+: Loss-making, immediate action needed
Focus first on your best-selling dishes. If you sell beef steak 50 times a week and you're losing €1 per portion, you're losing €2,600 per year.
Calculate the new selling price
For dishes that need repricing, calculate the minimum selling price for a healthy margin.
Formula: Minimum selling price excl. VAT = Food cost / (Desired food cost % / 100)
💡 Example recalculation:
For 30% food cost at €8.71 food cost:
- Minimum price excl. VAT: €8.71 / 0.30 = €29.03
- Minimum price incl. VAT: €29.03 × 1.09 = €31.64
- Rounded: €32.50
New food cost: 29.2%
Always round to logical amounts. €31.64 becomes €32.50 or €33.00. Guests find €32.50 more acceptable than €31.95.
Plan the implementation of new prices
Roll out price changes strategically. Don't raise all dishes at once, but spread them over 2-3 months.
- Month 1: Raise your 3 most expensive dishes
- Month 2: Raise popular dishes in small steps
- Month 3: Adjust remaining dishes
⚠️ Note:
Never raise more than 10-15% at once. Guests notice big jumps and may stop coming.
Don't communicate price changes explicitly. Just print new menus. Most guests won't notice small increases (€1-2).
How do you calculate which dishes need repricing? (step by step)
Update all ingredient prices
Check your latest invoices and note the current purchase prices of your top 20 ingredients. Pay special attention to meat, fish, and other expensive products that often increase in price.
Calculate new food cost per dish
Add up all ingredient costs based on current prices. Don't forget garnishes, sauces, and oil - everything that goes on the plate counts.
Calculate new food cost percentage
Divide the new food cost by your current selling price (excl. VAT) and multiply by 100. Dishes above 35% food cost need repricing.
Determine new selling price
Use the formula: food cost divided by desired food cost percentage. For 30% food cost you divide by 0.30. Don't forget to add 9% VAT for the menu price.
Plan phased implementation
Don't raise all prices at once. Start with your most expensive dishes and spread increases over 2-3 months. Keep increases under 15% at a time.
✨ Pro tip
Check your 5 best-selling dishes every month. If those have a healthy food cost, 80% of your revenue is in good shape. Focus on these top performers before recalculating all dishes.
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 often should I check my food costs?
At least every 3 months, or immediately after major supplier price increases. For volatile products like fish or seasonal vegetables, monthly checks may be necessary.
What if my food cost is above 40%?
Then you're losing money on that dish. Raise the price immediately or reduce portions. For popular dishes, you can increase the price gradually over 2 months.
Do I need to reprice all dishes at once?
No, spread price changes over 2-3 months. Start with your most expensive dishes and work your way down. Guests notice phased increases less.
How do I communicate price changes to guests?
Don't. Just print new menus without announcement. Small increases (€1-2) go largely unnoticed. Big jumps do, so keep increases limited.
Can I adjust portion size instead of raising the price?
Yes, that works too. 10% smaller portions have the same effect as a 10% price increase. But be careful guests don't notice, or they'll feel cheated.
What if competitors don't raise their prices?
Increase gradually and focus on quality and experience. Guests pay more for better service and ambiance. Don't sell below cost just to match competitors.
📚 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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