I'll admit something most chefs won't: I've priced dishes completely wrong more times than I care to count. Price too low and you're basically paying customers to eat your food. Price too high and you'll watch servers awkwardly explain why nobody orders it.
Analyze your current menu
Before setting a new price, you need to understand where your dish fits within your existing offering. Look at comparable dishes on your menu and categorize them.
- Meat main courses: what prices are you charging now?
- Fish dishes: what's your lowest and highest price?
- Vegetarian options: where does that price range fall?
💡 Example:
Bistro with these main courses:
- Schnitzel: €18.50
- Steak: €28.00
- Salmon: €24.50
- Risotto: €16.50
Price range: €16.50 - €28.00
Calculate your minimum price based on food cost
Your new dish must at least cover its costs. First calculate what all the ingredients cost and work from there to your minimum selling price.
Formula: Minimum selling price = Ingredient costs ÷ (Desired food cost ÷ 100)
💡 Example calculation:
New dish: Tenderloin with truffle sauce
- Tenderloin (200g): €8.40
- Vegetables: €2.20
- Truffle sauce: €3.10
- Garnish: €1.30
Total ingredient costs: €15.00
At 30% food cost: €15.00 ÷ 0.30 = €50.00 excl. VAT
Minimum menu price: €54.50 incl. VAT
⚠️ Note:
Always calculate first excl. VAT and then add 9% VAT to the menu price. Many entrepreneurs make mistakes here.
Determine your maximum price based on market position
Your maximum price depends on what guests will pay for this type of dish in your establishment. From years of working in professional kitchens, I've learned that price tolerance varies dramatically based on atmosphere, service level, and guest expectations. Look at your most expensive comparable dishes and the price-quality ratio.
- What's your most expensive main course now?
- How does the quality of your new dish compare to it?
- What do comparable establishments in the area charge?
- Does this fit the image guests have of your establishment?
Test different price points
Within your range you can test different prices. Start conservatively and see how the dish sells. A dish that sells well at a slightly lower margin often beats one that sells poorly at a high margin.
💡 Example price range:
Tenderloin dish from previous example:
- Minimum (30% food cost): €54.50
- Conservative (25% food cost): €65.40
- Premium (20% food cost): €81.75
Price range: €55 - €82
Starting price: €68.00 (27% food cost)
Monitor and adjust
Keep a close eye on how often the dish gets ordered in the first few weeks. If it's very popular, you can cautiously raise the price. If it sells poorly, you need to look at whether the price is too high or if other factors are at play.
⚠️ Note:
Don't change prices too often. Guests will notice and it can be confusing. Give a new price at least 2-3 weeks to settle.
How do you determine the price range? (step by step)
Calculate your ingredient costs exactly
Add up all costs: main ingredient, side dishes, sauces, garnish and even the oil in the pan. Don't forget anything, because every euro counts for your margin.
Determine your minimum price with food cost formula
Divide your ingredient costs by your desired food cost percentage (usually 25-35%). This gives you the minimum selling price excl. VAT.
Compare with existing dishes on your menu
Look at where comparable dishes are priced. Your new dish should fit logically within your existing price structure.
Test a starting price within your range
Start conservatively, somewhere between your minimum and maximum. Monitor sales and adjust based on popularity.
✨ Pro tip
Track your new dish's sales velocity for exactly 3 weeks before making any price adjustments. A dish selling 8-12 portions per week indicates you've hit the sweet spot for both price and appeal.
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
Should I always aim for 30% food cost for new dishes?
No, this depends on your type of establishment. Fine dining can often achieve 25-28%, while casual dining sometimes needs 35%. Look at your existing successful dishes.
What if my minimum price comes out much higher than comparable dishes?
Then your ingredient costs are too high or you need to adjust the recipe. Look for cheaper alternatives or smaller portions. A dish that can't be profitable shouldn't be on your menu.
How often can I adjust the price of a new dish?
Give a new price at least 2-3 weeks. After that you can cautiously adjust based on sales figures. Changing too frequently confuses guests and staff.
Should I account for seasonal fluctuations in ingredient prices?
Yes, especially for dishes with seasonal ingredients. Calculate your price based on average annual costs, not just the cheapest period.
Can I test a higher price point by offering it as a 'special'?
That's a smart tactic. Specials can be more expensive and give you room to test whether guests are willing to pay more for this dish.
What if a dish has expensive ingredients but needs to fit a lower price category?
You'll need to get creative with portion sizes or find substitute ingredients. Sometimes a 150g portion works better than 200g, or you can use a less expensive cut prepared differently.
📚 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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