Which dishes are quietly draining your profits every single day? Smart prioritization lets you boost margins without overhauling your entire menu. You tackle the biggest money-losers first and build from there.
Start by calculating current food costs across all dishes
You can't fix what you don't measure. Calculate food costs for every dish and rank them highest to lowest.
💡 Example:
Restaurant De Smulhoek analyzes their 10 crowd favorites:
- Steak: 42% food cost (€14 ingredients on €33.50 excl. VAT)
- Salmon fillet: 38% food cost (€11 on €29 excl. VAT)
- Pasta carbonara: 28% food cost (€5.50 on €19.50 excl. VAT)
- Caesar salad: 25% food cost (€4.20 on €16.80 excl. VAT)
Priority: Fix steak and salmon immediately!
Target dishes exceeding 35% food cost first
Here's your benchmark: anything above 35% food cost actively hurts your bottom line. These dishes demand immediate attention through pricing or cost adjustments.
⚠️ Note:
Always calculate using prices excluding VAT. Menu prices include 9% VAT for food items.
Balance popularity with profitability
A high-cost dish sold 5 times weekly stings less than a moderately unprofitable dish you serve 50 times. Volume amplifies every margin problem.
- High food cost + popular: Attack first (maximum impact)
- High food cost + low sales: Second priority (or eliminate)
- Moderate food cost + very popular: Third priority
- Low food cost: Skip for now
💡 Example impact calculation:
Steak: 42% food cost, 25 portions weekly
- Excess cost: 7 percentage points (42% - 35% target)
- Loss per portion: €33.50 × 0.07 = €2.35
- Weekly loss: €2.35 × 25 = €58.75
- Annual loss: €58.75 × 52 = €3,055
One problematic steak costs €3,000+ yearly!
Test market tolerance for price increases
Not every dish can absorb a price bump. Research your competition and understand guest expectations for value. In my experience, one of the most common blind spots in kitchen management is assuming customers won't notice gradual increases—they often don't, if done strategically.
- Research comparable restaurants in your area
- Try smaller portions or ingredient swaps first
- Test modest increases of €1-2, never jump €5 immediately
- Track sales volume after adjustments
Consider cost reduction over price hikes
Sometimes cutting costs beats raising prices. Your guests won't notice, but your margins will improve.
💡 Cost reduction tactics:
- Source main ingredients from different suppliers
- Reduce portion sizes (200g steak vs. 250g)
- Swap expensive sides (fries vs. gratin potatoes)
- Replace premium ingredients (herb butter vs. truffle butter)
Usually more subtle than price increases.
Roll out changes gradually
Raising everything simultaneously screams "money grab" to customers. Spread adjustments across several months, starting with your worst performers.
- Month 1: Fix dishes above 40% food cost
- Month 3: Address 35-40% food cost range
- Month 6: Consider menu-wide inflation adjustments
How do you determine priority for price increases? (step by step)
Calculate food cost of all your dishes
Make a list of all dishes with their ingredient costs and selling price excluding VAT. Calculate food cost percentage: (ingredient costs ÷ selling price excl. VAT) × 100.
Sort by food cost percentage (high to low)
Order all dishes from highest to lowest food cost. Dishes above 35% get priority, above 40% is urgent.
Calculate financial impact per dish
Multiply the 'too high' food cost percentage by selling price and number of portions sold per week. This gives you the actual loss in euros.
Check feasibility of price increase
Compare with competition and consider alternatives like cost reduction. Plan phased adjustment over several months.
✨ Pro tip
Analyze your 8 highest-volume dishes over the past 30 days first. If these fall under 35% food cost, you've eliminated 75% of potential profit leaks and can address remaining issues at a comfortable pace.
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
Should I immediately raise prices on all dishes above 35% food cost?
No, prioritize strategically. Start with high-cost dishes that sell frequently—they're costing you the most money. Sometimes reducing ingredient costs or portion sizes works better than price increases.
How much can I increase prices without losing customers?
Test incremental increases of €1-2 per dish first. Jumps of €5+ are too obvious and risky. Gradual changes over months work better than shocking customers with sudden hikes.
What if my bestselling dish has terrible food cost margins?
You've found your biggest opportunity and biggest risk. Try cost reduction first—smaller portions, different ingredients, cheaper sides. If that doesn't work, then carefully test small price increases.
How frequently should I analyze my food costs?
Review every 3 months minimum, or immediately after supplier price changes. Ingredient costs for meat and fish can spike quickly, turning profitable dishes into money-losers overnight.
Can I use low food cost dishes as promotional tools?
Absolutely. Dishes with 20-25% food cost have room for discounts or special pricing. Use these as loss leaders to draw customers in, then upsell them on higher-margin items.
What's the fastest way to identify which dishes need immediate attention?
Calculate food cost percentages for your 10 most popular dishes first. If these are profitable, you've solved most problems. Focus your energy on high-volume sellers before worrying about specialty items.
📚 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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