A popular bistro in Amsterdam added a seafood pasta to their menu at €18.50, thinking they'd earn €6 profit per plate. Three months later, they discovered the dish actually cost €13.20 to make - losing €1.70 on every order. Calculating food cost before launch prevents these costly surprises.
Why calculating food cost upfront is crucial
A new dish without a food cost calculation is gambling with your profit. You might think you're making €12 per plate, but in reality you're losing €3. It happens more often than you'd think.
⚠️ Watch out:
Many chefs estimate ingredient costs instead of calculating them exactly. An estimate of €8 can actually be €11.50 in reality - that's €3.50 in lost profit per plate.
Gather all ingredients and quantities
Start with a complete list of everything that goes on the plate. Don't forget the 'little things' - they can add up quickly.
- Main ingredients: meat, fish, vegetables
- Sauces and dressings: including oil and butter
- Garnishes: herbs, microgreens, decoration
- Side dishes: potatoes, rice, bread
- Hidden ingredients: salt, pepper, olive oil for cooking
💡 Example: Grilled salmon with vegetables
For 1 portion you need:
- Salmon fillet: 180 grams
- Vegetable mix: 150 grams
- Hollandaise sauce: 40 ml
- Baby potatoes: 200 grams
- Olive oil for cooking: 10 ml
- Herbs and salt: 2 grams
Calculate exact purchase prices
Use your most recent purchase prices, not prices from last month. Suppliers raise their rates regularly.
Calculate per gram or milliliter:
- Salmon: €24.00/kg = €0.024 per gram
- Vegetables: €3.50/kg = €0.0035 per gram
- Hollandaise: €8.00/liter = €0.008 per ml
- Potatoes: €1.20/kg = €0.0012 per gram
💡 Calculation salmon dish:
- Salmon: 180g × €0.024 = €4.32
- Vegetables: 150g × €0.0035 = €0.53
- Hollandaise: 40ml × €0.008 = €0.32
- Potatoes: 200g × €0.0012 = €0.24
- Olive oil + herbs: €0.15
Total food cost: €5.56
Account for trim loss and waste
Not everything you buy ends up on the plate. Trim loss and waste increase your actual food cost. This is one of the most common blind spots in kitchen management - chefs calculate using purchase prices instead of actual usable portions.
⚠️ Watch out:
If you buy whole salmon for €18/kg, but 45% is waste (head, bones, skin), you're actually paying €32.73/kg for the fillet. Calculate using the actual fillet price, not the purchase price of whole fish.
Typical trim loss:
- Fish (whole to fillet): 40-55%
- Meat (whole to portions): 15-25%
- Vegetables (peeling): 15-25%
- Herbs (stems, wilted leaves): 10-20%
Determine your desired food cost percentage
For most restaurants, a healthy food cost sits between 28% and 35%. With a food cost of €5.56, you can calculate what you need to charge at minimum.
Formula for minimum selling price:
Selling price excl. VAT = Food cost ÷ (Desired food cost% ÷ 100)
💡 Price calculation salmon:
Food cost: €5.56 | Desired food cost: 30%
- Minimum price excl. VAT: €5.56 ÷ 0.30 = €18.53
- Price incl. 9% VAT: €18.53 × 1.09 = €20.20
- Rounded: €20.50 on the menu
Check: €5.56 ÷ €18.81 = 29.6% food cost ✓
Test the dish in practice
Calculate it on paper, but test it in real life too. Portion size, prep time, and taste can still affect your food cost.
- Make the dish 3-5 times to become consistent
- Measure portions exactly - 180g salmon, not 'a nice portion'
- Note any deviations - extra sauce, larger vegetable portion
- Check the taste - do you need more herbs?
A food cost calculator helps you track all ingredient prices and calculate food costs automatically, so you don't have to do the math every time.
How do you calculate the food cost of a new dish?
Make a complete ingredient list
Write down all ingredients with exact quantities per portion. Don't forget the 'little things' like oil, herbs, and garnishes - they can add up significantly in costs.
Calculate the cost per ingredient
Use your most recent purchase prices and convert everything to cost per gram or milliliter. Multiply this by the amount you need per portion.
Add up all ingredient costs
Sum all individual costs for the total food cost per portion. Account for trim loss if you're working with whole products that you process yourself.
Determine your selling price
Divide your food cost by your desired food cost percentage (usually 0.28-0.35) to get your minimum selling price excl. VAT. Multiply by 1.09 for the price incl. VAT.
Test in practice
Make the dish a few times to check if your calculation is correct. Pay attention to portion size, prep time, and whether you need extra ingredients.
✨ Pro tip
Test your calculated portions with 3 different kitchen staff members over the first week. Each cook's interpretation of "medium portion" can vary by 15-20g, which directly impacts your food cost accuracy.
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
What if my supplier raises prices after my calculation?
Update your food cost calculation right away and check if your selling price still works. Many restaurants forget to do this and unknowingly lose money on their dishes. Price increases can turn a profitable dish into a loss-maker overnight.
How precisely should I weigh my portions?
Very precisely, especially with expensive ingredients. An extra 20 grams of salmon costs you €0.48 per plate. With 50 portions per week, that's €1,248 per year in extra costs.
Should I include energy and labor costs in the food cost?
No, food cost covers ingredients only. Energy and labor are separate cost items that you track elsewhere. Your total costs (food + labor + overhead) must stay below your revenue for profit.
📚 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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