Creating a brilliant dish is one thing, but making money from it is another entirely. While many chefs craft amazing recipes, they often fail to generate enough profit or price themselves out of their target market. Food cost data transforms gut feelings into smart business decisions.
The 4 criteria for permanent menu placement
Every new dish needs to tick all four boxes before earning its permanent spot:
- Food cost stays under 35% - Otherwise your margins disappear
- Price point matches your brand - Can't alienate your core customers
- Ingredients stay available - Supply consistency matters year-round
- Kitchen can execute it - Must work during peak service
Step 1: Calculate the exact food cost
Track every single ingredient, especially the ones that seem insignificant:
💡 Example: Grilled salmon with vegetables
- Salmon fillet 180g: €6.40
- Vegetables (carrot, zucchini, bell pepper): €1.80
- Herbs and oil: €0.40
- Sauce (crème fraîche, dill): €0.60
- Garnish (lemon, parsley): €0.30
Total food cost: €9.50
Trimming loss will bite you if you're not careful. That whole salmon looks cheaper per kilo, but after filleting, you're often paying 40% more for actual usable portions.
Step 2: Test different selling prices
Run the numbers at various price points to find your sweet spot:
💡 Example: Food cost €9.50
- At €28.00 (excl. VAT €25.69): food cost 37% - margin killer
- At €32.00 (excl. VAT €29.36): food cost 32% - solid choice
- At €35.00 (excl. VAT €32.11): food cost 30% - money maker
Decision: €32.00 hits that perfect balance between profit and customer acceptance.
Step 3: Compare with existing dishes
Your new dish doesn't exist in a vacuum - it needs to fit your current lineup:
- Does the price make sense alongside other mains?
- Are you filling a pricing gap or creating unwanted competition?
- Will it cannibalize your top performers?
- Does it offer something different (protein type, dietary option)?
⚠️ Watch out:
Adding a dish cheaper than your current lowest price only makes sense if you're deliberately creating an entry point. Most diners gravitate toward the second-cheapest option anyway.
Step 4: Test operational feasibility
Perfect margins mean nothing if your kitchen can't deliver consistently:
- Prep time: Can you execute it during Saturday night rush?
- Sourcing: Will suppliers have everything you need in February and August?
- Storage life: How quickly do ingredients spoil?
- Skill level: Can your weekend cook make it as well as your head chef?
The final go/no-go decision
Based on real restaurant P&L data, dishes that meet these criteria consistently outperform those that don't:
✅ Go-criteria:
- Food cost between 28-35%
- Selling price fits target audience
- Ingredients reliably available
- Preparation time under 15 minutes
- Team can make it consistently
- Unique position on the menu
Hit 5 out of 6 criteria? You're ready to launch. Still unsure? Run it as a daily special first to test customer response.
Digital support for recipe development
Calculating food costs manually and running different pricing scenarios eats up valuable time. Tools like a food cost calculator automatically crunch your numbers at various selling prices and track ingredient cost fluctuations. You'll spend less time in spreadsheets and more time cooking.
How do you make the go/no-go decision? (step by step)
Calculate exact food cost including all ingredients
Add up all ingredients: main product, vegetables, herbs, oil, sauces and garnish. Don't forget to factor in trimming loss - this can make your food cost 20-40% higher than expected.
Test food cost at different selling prices
Calculate your food cost percentage at 3 different price points. Aim for 28-35% food cost. See which price best fits your target audience and concept.
Compare with existing menu
Check if the price makes sense between your other dishes. The new dish must have a unique position without competing with your best-sellers.
Test operational feasibility in the kitchen
Check if preparation time, ingredient availability and team knowledge add up. Make the dish 5 times during different busy moments to be sure.
Make go/no-go decision based on all criteria
If 5 of the 6 criteria (food cost, price, availability, preparation time, team knowledge, unique position) are positive, the dish can permanently go on the menu. If in doubt, test it first as a daily special.
✨ Pro tip
Track your new dish's performance for exactly 30 days after launch - measure both food cost accuracy and customer ordering frequency. If food costs creep above 35% or it's ordered less than 8 times per week, pull it from the menu.
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 my food cost comes in just above 35%?
First see if you can optimize your ingredients or adjust portions. If that doesn't work, raise the selling price. A dish with 37% food cost loses you money.
Should I account for seasonal ingredients?
Yes, calculate your food cost for the most expensive season. If asparagus costs €24/kg in March but €8/kg in May, calculate with €24. This prevents surprises.
How often should I recalculate food costs?
Check at least every 3 months or when there are major supplier price changes. Ingredient prices can rise 10-20% without you noticing.
Can I compensate for a high food cost dish with other dishes?
That's risky. You don't know what guests will order. Each dish must be profitable on its own, unless it deliberately serves as a loss leader.
📚 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.
Develop recipes with instant cost calculation
Every new recipe has a cost price. KitchenNmbrs calculates it while you build the recipe — so you know if it's profitable before it hits the menu. Try it free.
Start free trial →