Dishes with structurally low margins eat into your profit. Many restaurant owners keep loss-making dishes because they're popular or have emotional value. But if a dish structurally scores below 25% margin, it literally costs you money to sell it.
Which dishes are candidates for removal?
Not every dish needs to be equally profitable, but some are real loss-makers. Check these signals:
- Food cost above 40% - With normal pricing, there's too little left over
- Complex preparation, low price - Lots of labor, little revenue
- Expensive ingredients, modest sales - Inventory spoils regularly
- Seasonal with short shelf life - High waste risk
💡 Example:
A bistro has a fresh tuna tartare for €18.50 (incl. 9% VAT):
- Selling price excl. VAT: €16.97
- Ingredients (tuna, avocado, garnish): €8.20
- Food cost: (€8.20 / €16.97) × 100 = 48.3%
Too high! After labor and other costs, you're losing money.
The emotional trap
Many entrepreneurs keep loss-making dishes because:
- "It's our signature dish" - Emotional value overrides the numbers
- "Guests ask for it" - Popularity is confused with profitability
- "The chef is proud of it" - Culinary ambition vs. business reality
- "It attracts customers" - Hope that they'll also order profitable dishes
⚠️ Note:
A popular dish with 45% food cost costs you approximately €500 loss at 100 sales per month. That's €6,000 per year on a single dish.
Alternatives to removing
Before you take a dish off the menu, try these options:
- Raise the price - Test if guests are willing to pay more
- Reduce portion size - Fewer ingredients, same price
- Use cheaper ingredients - Different supplier or quality
- Simplify preparation - Make it less labor-intensive
- Make it seasonal - Only offer it when ingredients are cheap
💡 Example:
That tuna tartare at €18.50 with 48% food cost:
- Option 1: Raise price to €22.50 → food cost becomes 39%
- Option 2: Smaller tuna portion → ingredients €6.80 → food cost 40%
- Option 3: Remove and replace with carpaccio at 28% food cost
The removal itself
If adjustments don't help, removing is sometimes the best option. Do it smartly:
- Phase out gradually - "While supplies last"
- Replace with alternative - Same flavor profile, better margin
- Seasonal menu - "Coming back in spring"
- Special occasions - Only on request or at events
Communicate honestly with your team why certain dishes are disappearing. It's not about quality, but about healthy business operations.
✅ Result:
By replacing 2-3 loss-making dishes with profitable alternatives, your average food cost can drop by 3-5 percentage points. At €300,000 annual turnover, that means €9,000-€15,000 extra profit.
How do you determine which dishes you need to remove?
Calculate food cost of all dishes
Make a list of all your dishes with exact ingredient costs. Divide by selling price excl. VAT and multiply by 100 for the percentage.
Rank by profitability and popularity
Put dishes in a list: food cost percentage and number of sales per month. Dishes with high food cost and low sales are first candidates.
Test adjustments for borderline cases
For dishes between 35-40% food cost: try price increase or smaller portion first. Give this 4-6 weeks to measure impact.
Plan replacement for removed dishes
Develop an alternative with similar flavor but better margin. Test this internally before removing the old dish.
Communicate change to team and guests
Explain why dishes are disappearing and train staff on new alternatives. Use positive framing: "New seasonal menu".
✨ Pro tip
Check your 3 least sold dishes from last month. If they also have high food cost, they're perfect candidates for replacement. This makes room for profitable alternatives.
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
At what food cost percentage should I remove a dish?
Above 40% food cost it becomes difficult to make profit. Between 35-40% you can try raising the price or adjusting the portion. Below 35% is usually workable.
What if guests specifically ask for a removed dish?
Offer an alternative with similar flavor. For example: "We've replaced the tuna tartare with a delicious salmon tartare." Train your staff to handle these situations positively.
Can I keep loss-making dishes as a loss leader?
Only if you can prove that guests also order profitable dishes. But usually it's better to develop a profitable dish as your signature item.
How often should I evaluate my menu for profitability?
At least quarterly, or after every supplier price change. With seasonal menus, do this with each changeover. Especially keep a close eye on your 5 best-selling dishes.
What if my chef refuses to remove his signature dish?
Let the numbers speak. Calculate what the dish costs per year and discuss alternatives. Sometimes a small adjustment (portion size, garnish) can make the difference between loss and profit.
Should I account for labor costs when removing dishes?
Yes, labor-intensive dishes with low margin are doubly disadvantageous. A simple dish with 35% food cost can be more profitable than a complex dish with 30% food cost.
📚 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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