A menu review is more than just adjusting prices - it's a complete analysis of what works and what doesn't. Many restaurants do this too infrequently, which means they miss out on profits from popular dishes and lose money on others. You need a systematic approach to review every dish's performance and profitability.
Why perform a complete menu review?
Your menu is your most powerful sales tool. Yet many restaurant owners don't examine it for months. Meanwhile, supplier prices shift, guest preferences evolve, and profits slip away.
⚠️ Note:
A dish that had 28% food cost last year might now cost 35% due to price increases. Without a review, you lose 7 cents per euro in revenue.
Gather all data for the analysis
Start by collecting three types of data: sales figures, cost prices, and guest feedback. You'll need at least 3 months of data for a reliable picture.
- Sales numbers per dish (from your POS system)
- Current purchase prices of all ingredients
- Feedback from guests and staff
- Seasonal trends
💡 Example:
Restaurant with 20 main courses, data from March-May:
- Steak: 450 portions, €32 menu price
- Salmon: 280 portions, €26 menu price
- Vegetarian pasta: 180 portions, €18 menu price
Focus first on the top 5 best-selling dishes.
Calculate current food cost per dish
Now it's time to crunch the numbers. For each dish you calculate the exact ingredient costs and food cost percentage. After managing kitchen operations for nearly a decade, I've seen many restaurants get shocked by these results.
Formula: Food cost % = (Ingredient costs / Selling price excl. VAT) × 100
💡 Example calculation:
Steak menu for €32.00 incl. 9% VAT:
- Selling price excl. VAT: €32.00 / 1.09 = €29.36
- Ingredient costs: €11.20
- Food cost: (€11.20 / €29.36) × 100 = 38.1%
This is too high - aim for max 33% for main courses.
Categorize dishes using menu engineering
Now comes the strategic analysis. You'll categorize each dish based on two criteria: popularity and profitability. This gives you four categories to work with.
- Stars: Popular and profitable - promote these
- Plowhorses: Popular but not profitable - raise price or lower costs
- Puzzles: Profitable but not popular - promote better or reuse ingredients
- Dogs: Not popular and not profitable - consider removing
💡 Example categorization:
From 20 main courses:
- 5 Stars: keep and promote
- 6 Plowhorses: raise prices by €2-4
- 4 Puzzles: better position on menu
- 5 Dogs: remove 3, replace 2
Result: from 20 to 17 dishes, higher average margin.
Determine new prices and positions
For each category you apply a different strategy. Stars get a prominent spot, Plowhorses a higher price, Puzzles a better description, and Dogs are removed or replaced.
⚠️ Note:
Don't raise prices by more than €3-4 at a time. Guests notice big jumps and may drop off.
Test and monitor the new menu
Implement the changes and monitor the first 4-6 weeks extra carefully. Look at sales numbers, guest feedback, and total revenue per guest.
- Weekly: sales numbers per dish
- Daily: average check value
- Monthly: total food cost percentage
- Quarterly: plan next review
How do you perform a menu review? (step by step)
Gather 3 months of sales data
Pull from your POS system how many of each dish you've sold. Also note seasonal peaks and dips. Focus on your top 10 best-selling dishes for in-depth analysis.
Calculate current food cost per dish
Add up all ingredient costs and divide by the selling price excl. VAT. Multiply by 100 for the percentage. Anything above 35% needs attention.
Categorize using menu engineering
Create four categories: Stars (popular + profitable), Plowhorses (popular + not profitable), Puzzles (not popular + profitable), Dogs (not popular + not profitable).
Determine action per category
Promote Stars, raise prices on Plowhorses, better describe Puzzles, remove or replace Dogs. Raise prices max €3-4 at a time.
Implement and monitor for 6 weeks
Roll out changes and track sales figures weekly. Pay attention to guest feedback and average check value. Plan the next review in 3-4 months.
✨ Pro tip
Focus on your top 7 dishes first and recalculate their margins within 48 hours of starting your review. These dishes typically represent 60-70% of your total food sales.
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 review my menu?
At least 2x per year, preferably every quarter. Supplier prices and seasons change constantly, so your menu needs to move with them to stay profitable.
What if guests complain about price increases?
Don't raise prices by more than €3-4 at a time and explain why (quality, fresh ingredients). Guests accept fair prices for good quality.
Should I always remove loss-making dishes?
Not always. If it's a signature dish or attracts many guests who then buy profitable drinks, it might be worth keeping. Consider the total guest value, not just the dish margin.
📚 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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