Ever wonder why your monthly profits keep shrinking even though you're busier than ever? Chances are your ingredient costs have crept up while you're still calculating with outdated prices. Most restaurants discover this painful truth only after months of bleeding money.
Your cost calculations are living in the past
Suppliers bump their prices 3-4 times yearly. Meat, fish and dairy regularly jump 10-20%, but most kitchens keep calculating with six-month-old numbers.
⚠️ Watch out:
If your supplier raises beef from €18 to €22 per kilo, but you're still calculating with €18, you lose €4 per kilo. With 50 steaks per week that's €10,400 per year.
Start with these volatile ingredients
Focus on categories where prices shift fastest:
- Meat and fish: Market conditions create wild price swings
- Dairy products: Butter, cream and cheese track milk price fluctuations
- Oils and nuts: International commodity markets drive these costs
- Imported specialties: Currency exchange rates hit these hardest
? Example:
Your steak from last year:
- Steak (200g): €3.60 (was €18/kg)
- Garnish and sauce: €2.40
- Total ingredients: €6.00
New supplier price €22/kg:
- Steak (200g): €4.40
- Garnish and sauce: €2.40
- Total ingredients: €6.80
Difference: €0.80 per portion less profit
Red flags that scream "update now"
These signals mean you're already losing money:
- Invoice shock: Same quantities, higher bills
- Food cost creep: From 30% to 35% without recipe changes
- Advance price notices: Suppliers typically warn 2-4 weeks ahead
- Seasonal transitions: Vegetables and fish prices shift dramatically
? Example:
Your pasta carbonara had a food cost of 28%. Suddenly it's 33%. What happened?
- Parmesan: from €24 to €28 per kilo (+17%)
- Cream: from €3.20 to €3.80 per liter (+19%)
- Pancetta: from €16 to €19 per kilo (+19%)
Result: €1.20 more costs per portion
Monthly recalculation schedule that actually works
After managing kitchen operations for nearly a decade, I've learned that consistency beats perfection. Break it down weekly:
- Week 1: Audit your 5 highest-volume dishes
- Week 2: Tackle all meat and fish items
- Week 3: Review seasonal menu components
- Week 4: Check desserts and starters
Thirty minutes weekly prevents hundreds in monthly losses.
? Example:
Restaurant with 200 covers per week, 3 main courses that generate €0.50 less per portion:
- Per week: 200 × €0.50 = €100 loss
- Per month: €400 loss
- Per year: €4,800 loss
Half an hour of recalculating per month can save you €4,800 per year
Spreadsheets vs. automated systems
Excel and paper calculations work but eat up precious time. Digital tools like KitchenNmbrs update one ingredient price and automatically recalculate every affected dish.
You'll instantly spot which items remain profitable and which need immediate price adjustments.
Related articles
How do you update your cost prices systematically?
Make a list of your most important dishes
Start with your 10 best-selling dishes. These have the biggest impact on your profit. Note the current food cost percentage of each dish.
Gather the new purchase prices
Check your latest invoices or ask your supplier for the current price list. Pay special attention to meat, fish, dairy and specialty ingredients - these have the biggest changes.
Recalculate the cost price per dish
Update the ingredient prices and calculate the new cost price. Use the formula: Food cost % = (Ingredient costs / Sales price excl. VAT) × 100.
Decide what you're going to do
Dishes above 35% food cost don't generate enough profit. You can raise the menu price, reduce the portion, or use cheaper ingredients.
✨ Pro tip
Focus on dishes containing beef, salmon, or imported cheese first - recalculate these every 6 weeks since they fluctuate most. Skip items with stable ingredients like pasta or rice until quarterly reviews.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
Calculate it yourself?
Our free food cost calculator does it in seconds.
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Frequently asked questions
How often should I check my cost prices?
What if my food cost goes from 30% to 38% due to price increases?
Can't I just raise all prices by 10%?
How do I know if my supplier is charging fair prices?
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
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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