Recipe analysis exposes the hidden profit killers on your menu. Most restaurant owners assume their crowd-pleasers make the most money. That assumption can bankrupt you.
What is recipe analysis and why is it crucial?
Recipe analysis means breaking down every single ingredient cost to see what dishes actually earn versus what they steal from your bottom line. You're not just eyeballing the main protein - every garnish, every drop of oil, every pinch of salt gets counted.
💡 Example: Steak with fries
Menu price: €32.00 (incl. 9% VAT) = €29.36 excl. VAT
- Steak 250g: €8.50
- Fries 200g: €0.80
- Sauce: €0.40
- Garnish: €0.60
- Butter, oil, herbs: €0.30
Total ingredient costs: €10.60
Food cost: (€10.60 / €29.36) × 100 = 36.1%
This dish loses money! Standard food cost is max 33%.
The 3 signals of money-losing dishes
Profit killers don't always announce themselves. But they leave clues:
- Food cost creeping past 35%: Your margins are bleeding out
- Supplier prices climbing while menu prices stay flat: Death by a thousand cuts
- High-volume dishes contributing weak profits: Busy work that pays poorly
⚠️ Watch out:
Those invisible extras add up fast: cooking oil, seasonings, microgreens, that drizzle of truffle oil. They can easily tack on €1.50-2.00 per plate.
Perform recipe analysis step-by-step
Random guessing kills restaurants. Start with your top 5 volume dishes - they make or break your profit margins.
Gather all ingredients and costs
Get surgical about this. Every component that touches the plate gets measured and priced:
- Primary proteins and vegetables
- Starches and sides
- Sauces, dressings, and condiments
- Seasonings and aromatics
- Cooking fats and oils
- Garnishes and finishing touches
💡 Example: Caesar salad
Looks innocent, but check this breakdown:
- Chicken 150g: €2.40
- Lettuce 100g: €0.80
- Parmesan 30g: €1.20
- Croutons: €0.40
- Caesar dressing: €0.60
- Anchovies: €0.30
Total: €5.70 - way more expensive than it appears!
Calculate the actual cost price per portion
Measure what actually leaves your kitchen. From years of working in professional kitchens, I've seen portion sizes creep up without anyone noticing - suddenly your 6oz portions become 8oz.
Formula cost price per portion:
(Purchase price per kg / 1000g) × actual grams per portion = true cost per portion
Compare with your selling price
Now run the numbers that matter:
Food cost % = (Total ingredient costs / Selling price excl. VAT) × 100
⚠️ Watch out:
Always work with prices EXCLUDING VAT. Your menu shows prices with 9% VAT included. Divide by 1.09 to get the real selling price.
What do you do with money-losing dishes?
Found dishes pushing past 35% food cost? You've got 4 moves:
- Bump the price: Most direct fix, but watch your competition
- Trim portions: Shave 20g of protein, save €1+ instantly
- Source smarter: Same quality, better supplier deals
- Recipe redesign: Swap expensive components for clever alternatives
💡 Example: Price adjustment
Your steak costs €10.60 in raw materials.
Target 30% food cost means:
Minimum price excl. VAT: €10.60 / 0.30 = €35.33
Menu price: €35.33 × 1.09 = €38.51
Jump from €32.00 to €38.50 = €6.50 extra profit per dish
Automate recipe analysis
Manual calculations eat time and breed errors. Smart operators use digital systems to handle the heavy lifting.
Food cost calculators like KitchenNmbrs let you build recipes once with precise ingredients and quantities. The system crunches cost prices and food percentages automatically. And here's the real magic: update one supplier price and every affected dish recalculates instantly.
This approach saves hours weekly while keeping your numbers current and accurate.
How do you perform recipe analysis? (step by step)
Choose your 5 best-selling dishes
Start with the dishes you sell the most. These have the biggest impact on your profit. Get the recipes and document all ingredients.
Add up all ingredient costs per portion
Calculate the cost of each ingredient per portion. Don't forget anything: from main ingredient to herbs and oil. Add everything together for the total cost price.
Calculate the food cost percentage
Divide the total ingredient costs by your selling price excluding VAT and multiply by 100. Above 35% is too high for most restaurants.
Determine your action per dish
Dishes above 35% food cost need to be addressed: raise price, reduce portion, use cheaper ingredients or adjust recipe. Choose the option that fits your concept.
Repeat monthly for all dishes
Supplier prices change constantly. Check your food cost monthly to prevent dishes from quietly becoming unprofitable without you noticing.
✨ Pro tip
Analyze your 3 highest-volume dishes within the next 7 days. These workhorses drive 60-70% of your food costs, so fixing them delivers immediate profit impact.
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 often should I do recipe analysis?
Monthly for your top 5 sellers, quarterly for everything else. Supplier prices shift constantly and can torpedo your margins without warning. Stay ahead of the curve.
Should I also include trimming loss?
Absolutely critical. Buy whole fish at €18/kg with 45% waste? Your usable fillet actually costs €32.73/kg. Always calculate with real, usable ingredient costs.
What if I don't have exact recipes?
Start with your chef's best estimates, then track actual usage for two weeks. Ask kitchen staff to measure portions during prep and service to get realistic numbers.
📚 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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