Most restaurant owners make menu decisions based on what they think works—and that's exactly how I used to lose money every month. You'll promote dishes because guests seem to enjoy them, not realizing some popular items barely cover their costs. A price card cuts through the guesswork by showing you exactly which dishes generate real profit and which ones are quietly draining your bank account.
What is a price card and why does it work?
A price card breaks down every dish on your menu with hard numbers: actual cost per portion, selling price, and profit margin. Unlike your regular menu that focuses on appealing descriptions, this version reveals the financial reality behind each plate you serve.
💡 Example price card:
- Steak: cost price €11.50 - selling price €32.00 - margin €20.50 (64%)
- Pasta carbonara: cost price €4.80 - selling price €16.50 - margin €11.70 (71%)
- Salmon fillet: cost price €13.20 - selling price €28.00 - margin €14.80 (53%)
Conclusion: Pasta carbonara is the most profitable per euro of revenue
How do you create a profitable menu with your price card?
Your price card becomes a strategic tool for deciding which dishes deserve prime menu real estate and which need adjustment or removal.
Categorize dishes
Sort your menu items using two key metrics: how often they sell and how much profit they generate.
- Stars: Popular and profitable → Push these aggressively
- Puzzles: Profitable but slow-moving → Find ways to boost their appeal
- Plowhorses: Popular but low-margin → Increase prices or cut costs
- Dogs: Neither popular nor profitable → Strong candidates for removal
⚠️ Note:
Always work with pre-tax prices in your calculations. That €32.00 menu price becomes €29.36 before VAT (at 9% rate). Your margin calculations should reflect the actual revenue you keep.
Adjust menu positioning
From years of working in professional kitchens, I've seen how menu layout directly impacts what guests order. Use your price card data to guide these placement decisions:
- Top billing: Lead each section with your highest-margin dish
- Visual emphasis: Highlight your 'Stars' with boxes or special formatting
- Rich descriptions: Give profitable dishes longer, more enticing write-ups
- Staff training: Equip servers to naturally suggest high-margin options
💡 Example adjustment:
Your pasta carbonara delivers 71% margin and moves consistently. Meanwhile, that steak sits at 64% margin but rarely sells.
Action: Feature the carbonara prominently with an appetizing description. Train staff to position it as your 'chef's specialty'.
Result: More orders of your profit champion
Adjust prices based on your price card
Your price card exposes dishes that you're practically giving away. Popular items running below 65% margin often tolerate modest price bumps without significant order drops.
Price increase step-by-step plan
- Target high-volume dishes with thin margins
- Implement €1-2 increases
- Track sales patterns for 2-3 weeks
- No drop in orders? You've boosted profitability
- Orders decline? Calculate if higher margins offset lower volume
💡 Price increase calculation example:
Steak: 100 portions/month at €32.00 = €3,200 revenue, €2,050 margin
After increase to €35.00: 90 portions/month = €3,150 revenue, €2,115 margin
Result: €65 more margin despite 10% fewer sales
Lower cost prices with your price card
Sometimes competitive pressure makes price increases impossible. That's your cue to attack the cost side of the equation.
- Portion control: Reducing portions by 10% cuts costs by the same percentage
- Ingredient swaps: Find quality alternatives that cost less
- Seasonal menus: Build dishes around ingredients at their price peaks
- Supplier negotiations: Shop around and renegotiate contracts regularly
How do you create a price card? (step by step)
Calculate cost price per dish
Make a list of all ingredients per dish with exact quantities and prices. Add everything up: main ingredient, garnish, sauce, oil, butter. This is your cost price per portion.
Calculate margin per dish
Subtract the cost price from your selling price (excluding VAT). Divide this by your selling price and multiply by 100 for your margin percentage. For example: (€20.50 / €29.36) × 100 = 70% margin.
Rank by profitability
Sort your dishes from highest to lowest margin. Also look at absolute amounts: a dish with 60% margin on €40 yields more than 70% margin on €15.
Combine with sales data
Add how often each dish is sold per week or month. Now you see which dishes sell a lot and generate a lot of revenue. These are your goldmines.
Adjust menu
Position profitable dishes prominently on your menu. Consider price increases for popular dishes with low margin or cost price reductions where possible.
✨ Pro tip
Calculate the profit per square inch of menu space for your top 8 dishes every 6 weeks. The dishes generating the most profit per inch of real estate deserve the premium menu positions.
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 update my price card?
Update your price card every 3 months minimum, or immediately after major supplier price changes. Ingredient costs fluctuate constantly, and outdated calculations can kill your margins without you realizing it.
What profit margin should I target for restaurant dishes?
Aim for 65-75% margins on most dishes. Anything below 60% puts you in dangerous territory, while margins above 80% might price you out of your market.
Should I remove all low-margin dishes from my menu?
Not necessarily. Some low-margin items serve as loss leaders that draw customers in. But if a dish is both unprofitable and unpopular, it's usually safe to cut it.
How can I raise prices without losing customers?
Increase gradually—€1-2 at a time—and pair increases with quality improvements or better presentation. Focus on communicating added value rather than announcing price hikes.
What's the biggest mistake restaurants make with price cards?
They create one and then ignore it for months. Your price card only works if you act on what it reveals and keep it current with changing costs.
Can I track profitability without expensive POS software?
Yes, though it requires more manual work. You can analyze receipts, track sales with simple spreadsheets, or even do manual counts during service. The insights are worth the effort.
How do I handle dishes with seasonal ingredient costs?
Build flexibility into your pricing or rotate seasonal specials. Track ingredient costs monthly and adjust menu prices quarterly to maintain target margins throughout the year.
📚 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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