Your historical sales data reveal which dishes can handle price increases and which can't. Smart analysis of popularity versus profitability helps you raise prices strategically. This approach protects revenue while boosting margins.
Collect your sales data per dish
Dig through your register data from the past 3-6 months. You need two key figures per dish: total sales volume and actual profit margins.
? Example:
Steak with fries - past 3 months:
- Sold: 240 times
- Menu price: €28.50
- Ingredient costs: €9.20
- Food cost: 35.4% (too high)
Conclusion: Popular dish, but not enough margin
Create a popularity vs. profitability matrix
Sort your dishes into four categories based on sales volume and food cost percentage:
- Stars: Popular (top 30%) + low food cost (under 30%) → Leave prices alone
- Plowhorses: Popular + high food cost (above 35%) → Raise prices carefully
- Puzzles: Low sales + low food cost → Promote more heavily
- Dogs: Low sales + high food cost → Raise significantly or remove
⚠️ Heads up:
Don't touch the prices of your absolute bestsellers without solid justification. These dishes drive customer traffic.
Calculate the impact of price increases
For each dish you're considering, calculate how the price change affects your margins. Most kitchen managers discover too late that small increases compound into major profit improvements. Use this formula:
New food cost % = Ingredient costs / (New price / 1.09) × 100
? Example:
Pasta carbonara:
- Current price: €16.50 → food cost 38%
- New price: €18.50 → food cost 34%
- Sold: 180x per month
- Extra profit: €2.00 × 180 = €360/month
Even if you sell 10% less, you still earn an extra €324
Test price increases gradually
Don't adjust everything simultaneously. Start with your 'Plowhorses' - popular dishes with weak margins. These handle price increases better than other categories.
- Begin with 10-15% increases on dishes with food costs above 35%
- Monitor sales for 4-6 weeks to spot any drops
- If sales remain stable, consider additional adjustments
- Then move to other categories
Monitor the impact on total revenue
Track more than just the sales of adjusted dishes - watch your total revenue and cover counts too. Customers often compensate by ordering different items.
? Example:
After price increase on 3 main courses:
- Main course sales: -8%
- Appetizer sales: +12%
- Total revenue: +3%
- Average check: +11%
Result: Less kitchen work, more profit
Use seasonal patterns to your advantage
Historical data also show seasonal trends. Raise prices on popular seasonal dishes during peak demand periods, and adjust them when ingredient costs drop.
How do you analyze sales data for price adjustments?
Export register data from 3-6 months
Download sales reports per dish from your register system. You need: number sold per dish, total revenue per dish, and analysis period.
Calculate current food cost per dish
Add up all ingredient costs per dish and divide by the selling price excluding VAT. Mark dishes with food cost above 35% as candidates for price increase.
Rank dishes by popularity
Sort your dishes from most to least sold. The top 30% are your popular dishes - raise these carefully. The bottom 30% can handle bigger increases.
Calculate impact of new prices
For each dish you want to raise, calculate what the new food cost will be and how much extra profit this generates per month at current sales volumes.
Implement gradually and monitor
First raise 3-5 dishes with poor margins but good sales. Measure the effect on sales and total revenue for 4-6 weeks before proceeding further.
✨ Pro tip
Focus price increases on your 8-12 month historical data for dishes sold between 50-150 times monthly - these have enough volume to show clear profit impact but aren't so popular that increases risk major customer pushback. Start with €1-2 increases and measure results over 6 weeks.
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 many months of sales data do I need for reliable analysis?
What if I don't have detailed register data per dish?
How much can I raise prices without losing customers?
What if total revenue drops after implementing price increases?
Should I factor in competitor pricing before raising prices?
How do I handle price increases on combo meals or prix fixe menus?
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
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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