Three dishes on your menu are probably losing money without you realizing it. These are usually your popular dishes where ingredient prices have risen, but you haven't adjusted the menu price. In this article you'll learn exactly which three dishes most urgently need a price correction.
Why exactly three dishes?
Recalculating your entire menu takes too much time. By focusing on the three most urgent cases, you tackle 80% of your problem. These three dishes are usually:
- Your best-selling dish (highest impact on profit)
- The dish with the highest food cost percentage
- The dish whose ingredient prices have risen the most
Step 1: Identify your top 5 best-selling dishes
Check your POS system or note for a week how many of each dish you sell. Rank them from most to least sold.
💡 Example:
Sales figures from one week:
- Steak: 45 portions
- Salmon: 38 portions
- Pasta carbonara: 35 portions
- Chicken: 28 portions
- Vegetarian burger: 22 portions
Step 2: Calculate the current food cost of these 5 dishes
For each dish, add up all ingredient costs and divide by the selling price excluding VAT.
Formula: Food cost % = (Ingredient costs / Selling price excl. VAT) × 100
💡 Example steak:
Ingredient costs:
- Steak 200g: €7.20
- Potatoes: €0.80
- Vegetables: €1.20
- Sauce: €0.60
- Butter/oil: €0.40
Total ingredient costs: €10.20
Menu price: €32.00 incl. VAT = €29.36 excl. VAT
Food cost: (€10.20 / €29.36) × 100 = 34.7%
⚠️ Note:
Always calculate with the price excluding VAT. For restaurant food that's 9% VAT. Divide the menu price by 1.09 to get the price excl. VAT.
Step 3: Determine which three are most urgent
Now you have the food cost of your 5 best-selling dishes. Sort them by urgency:
- Most urgent: Food cost above 35% AND high sales
- Second priority: Food cost between 32-35% with very high sales
- Third priority: Food cost above 38%, even if you sell fewer
💡 Example prioritization:
- Steak: 34.7% food cost, 45 portions → Priority 2
- Salmon: 38.2% food cost, 38 portions → Priority 1 (most urgent!)
- Pasta: 29.1% food cost, 35 portions → Fine as is
- Chicken: 41.3% food cost, 28 portions → Priority 3
- Veggie burger: 26.8% food cost, 22 portions → Fine as is
Calculate the financial impact per dish
For each of the three urgent dishes, calculate how much money you're losing per week and per year.
Formula: Loss per portion = (Current food cost % - Target food cost %) × Selling price excl. VAT
💡 Example salmon (38.2% food cost):
Target food cost: 30%
Selling price excl. VAT: €27.52
Loss per portion: (38.2% - 30%) × €27.52 = €2.26
Sales per week: 38 portions
Loss per week: 38 × €2.26 = €85.88
Loss per year: €85.88 × 52 = €4,466
What action per dish?
For each of the three dishes you have three options:
- Raise price: Calculate new menu price for desired food cost
- Reduce portion: Use fewer ingredients
- Cheaper ingredients: Alternative supplier or quality
⚠️ Note:
Start with your best-selling dish. That's where you have the biggest impact. A small price increase of €2 on a dish you sell 45 times a week generates an extra €4,680 per year.
How often to repeat?
Repeat this analysis every 3 months. Ingredient prices change constantly and so does your sales pattern. What's your number 1 problem today might be solved in 3 months.
How to find the three most urgent dishes? (step by step)
Determine your top 5 best-selling dishes
Note for a week how many of each dish you sell, or check your POS system. Rank them from most to least sold.
Calculate the current food cost of these 5 dishes
Add up all ingredient costs per dish. Divide by the selling price excluding VAT and multiply by 100 for the percentage.
Prioritize by food cost percentage and sales volume
Dishes above 35% food cost with high sales are most urgent. Dishes above 38% are always urgent, regardless of sales.
Calculate the financial loss per dish
Multiply the difference between current and target food cost by your selling price and weekly sales. This shows urgency in euros.
Choose your action: price, portion or ingredient
For each urgent dish choose: raise menu price, reduce portion size, or find cheaper ingredients. Always start with your best-seller.
✨ Pro tip
Check your best-selling dish first. That's where you have the biggest impact. A 2% food cost improvement on a dish you sell 50 times a week can save you thousands of euros per year.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
Was this article helpful?
Frequently asked questions
What if all my dishes have a low food cost?
Then you're doing well! But do check if your ingredient prices are still correct. Many entrepreneurs forget to include costs like oil, butter, spices and garnish.
Should I include all ingredients, even salt and pepper?
For an accurate calculation, yes. Salt and pepper cost little, but oil, butter, sauces and spices can add up. Include everything that goes on the plate.
How often should I repeat this analysis?
Every 3 months, or immediately if your supplier raises prices. Ingredient prices change constantly, so does your food cost.
What if my best-selling dish has a high food cost?
Then that's your priority number 1. A small price increase on a popular dish has the biggest impact on your total profit.
Can I raise the menu price without losing customers?
Small increases (€1-2) often go unnoticed. Do it gradually and communicate about quality or fresh ingredients if needed.
What is an acceptable food cost percentage?
For most restaurants this is between 28-35%. Fine dining can be higher (up to 38%), fast casual often lower (25-30%). It depends on your concept and other costs.
📚 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.
Set selling prices based on facts
Guessing at prices? KitchenNmbrs calculates the ideal selling price based on your actual food cost and desired margin. Test it free for 14 days.
Start free trial →