Recipes with clear margin targets prevent costly surprises, while dishes without them drain profit silently. Most restaurants track sales religiously but ignore which items actually make money. Smart operators prioritize margin targets for specific recipe categories first.
Start with your best-selling dishes
You can't tackle all 40 dishes at once. Begin with the recipes that have the biggest impact on your total profit.
💡 Example: Top 5 analysis
Restaurant with 25 dishes on the menu:
- Steak: 120 portions/month
- Salmon: 95 portions/month
- Pasta carbonara: 85 portions/month
- Burger: 80 portions/month
- Risotto: 65 portions/month
These 5 dishes = 60% of all sales
Focus first on these top performers. If their food cost is accurate, you've secured the biggest chunk of your profit.
Dishes with expensive main ingredients
Meat, fish, and specialty ingredients can make or break your margin. These deserve extra attention because prices fluctuate regularly.
- Beef dishes: Prices rise 10-20% per year
- Fish and seafood: Seasonal price fluctuations
- Specialty cheeses: Imported products with exchange rate variations
- Truffles, oysters: Luxury ingredients with extreme price swings
⚠️ Watch out:
A steak that cost €28 to buy last year might now cost €35. If your menu price didn't adjust, you're losing €7 per portion.
Dishes with many preparation steps
Complex recipes carry more risk of cost overruns due to:
- Cutting waste on fresh produce
- Multiple garnishes and sauces
- Longer prep time (higher labor costs)
- Greater risk of waste
💡 Example: Complex dishes
Dishes that often come in over budget:
- Whole fish (lots of cutting waste)
- Tartare (handwork + garnish)
- Braised meat (long cooking time)
- Amuses with 5+ components
Seasonal and rotating menus
Dishes that change regularly have dynamic costs. After managing kitchen operations for nearly a decade, I've learned it's crucial to set margin targets before you launch the dish.
- Seasonal specials: Asparagus, game, oysters
- Daily specials: Depending on daily purchases
- Weekly rotations: Chef's choice menus
- Promotional menus: Limited-time offers
Set a minimum selling price in advance based on your margin target. This prevents you from discovering later that a 'special' is running at a loss.
Margin targets by dish category
Different types of dishes have different margin expectations:
💡 Common margin targets:
- Appetizers: 25-30% food cost
- Pastas: 20-28% food cost
- Fish main courses: 30-35% food cost
- Meat main courses: 28-33% food cost
- Desserts: 20-25% food cost
Setting price ranges
For each priority recipe you establish a price range:
- Minimum price: Break-even + desired margin
- Market price: What comparable establishments charge
- Maximum price: What the market will accept
This allows you to respond flexibly to cost changes without losing your margin.
How do you set margin targets? (step by step)
Identify your top 10 recipes
Make a list of your 10 best-selling dishes from the past month. Count the number of portions per dish and rank by popularity.
Calculate current food cost per dish
Add up all ingredient costs per portion, including garnishes and sauces. Divide this by your current selling price (excl. VAT) and multiply by 100 for the percentage.
Set margin targets per category
Determine your desired food cost percentage per dish category. Appetizers can be lower (25%), main courses higher (30-35%). Calculate the minimum selling price per dish.
Create price ranges
Set a minimum, market, and maximum price for each dish. The minimum price covers your costs plus margin, the maximum price is what the market will accept.
Review monthly
Check each month if your ingredient prices have changed. Adjust your selling prices as needed within the range you've established.
✨ Pro tip
Target your 7 highest-volume dishes that contain proteins over €15/kg within the next 30 days. These combinations drive 65% of margin variance across most operations.
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
Do I need to set margin targets for every dish on my menu?
No, start with your 10 best-selling dishes. These have the biggest impact on your total profit. You can tackle the rest later.
What if my current food cost is higher than my margin target?
Then you have three options: raise your selling price, lower your ingredient costs, or accept a temporarily lower margin. First check if your calculation is accurate.
How often should I adjust my margin targets?
You can review margin targets annually. Check ingredient prices monthly, adjust selling prices within your established range.
What if a dish is popular but generates little margin?
These are 'plowhorses' in menu engineering. Try first to lower the cost price or raise the price. If that doesn't work, consider replacing the dish.
📚 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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