Many restaurant owners think unprofitable dishes must be immediately axed from the menu. That's not always true. Sometimes a price adjustment works better than removal, depending on the dish's popularity and required profit margin changes.
The decision matrix: popularity vs. margin
You need two key numbers for this choice: sales frequency of the dish and the adjustment size needed for profitability. These numbers together reveal your smartest move.
💡 Example:
Your carbonara has a food cost of 42% and sells 8 times per week:
- Current selling price: €16.50 excl. VAT
- Ingredient costs: €6.93
- For 30% food cost: €23.10 excl. VAT needed
- Price increase: €6.60 (40% more expensive)
40% more expensive for a popular dish? Risk of losing customers.
Price increases that actually work
Bump up the price if your dish is popular (over 5% of total sales) and the required increase stays below 25%. Popular items can handle more price flexibility.
- Small bumps: 10-15% increases often slip by unnoticed
- Staged approach: Split the increase across 2-3 adjustments over months
- Value addition: Pair price hikes with upgraded garnishes or premium ingredients
⚠️ Heads up:
Don't raise prices on more than 3 dishes simultaneously. Customers spot widespread price changes and assume everything's getting pricier.
Smart menu removal decisions
Cut the dish if it sells weakly (under 3% of total sales) and needs a massive price jump (over 30%) to turn profitable.
- Minimal disruption: Few customers will notice it's gone
- Simplified operations: Less inventory to manage and track
- Better focus: More energy on money-making dishes
💡 Example:
Your salmon dish sells 2 times per week with 45% food cost:
- Current price: €24.00 excl. VAT
- For 30% food cost: €36.00 excl. VAT needed
- That's 50% more expensive - way too steep for such a price-sensitive dish
Better move: drop from menu and swap in a more profitable option.
The overlooked option: slash ingredient costs
Sometimes you can reduce ingredient expenses without sacrificing quality. After managing kitchen operations for nearly a decade, I've seen this save more dishes than price increases ever could.
- Supplier shopping: Identical quality, better pricing
- Portion tweaks: 200g steak becomes 180g with additional vegetables
- Seasonal swaps: Trade expensive items for seasonal options
- Prep optimization: Cut waste through improved techniques
Calculate the real financial impact
Always crunch the numbers for what each choice costs or brings you annually. Make decisions based on data, not hunches.
💡 Example calculation:
Dish sells 10 times per week, loses €3 per portion:
- Current loss: €3 × 10 × 50 weeks = €1,500/year
- Option 1: Raise price → +€1,500 profit
- Option 2: Remove from menu → €0 profit/loss, but space for new dish
Your choice hinges on: how much sales volume disappears with higher prices?
How do you make this decision? (step by step)
Calculate the current food cost of the dish
Add up all ingredient costs and divide by the selling price excl. VAT. Multiply by 100 for the percentage. Anything above 35% is problematic.
Check how often you sell the dish
Look at the last 4 weeks. Calculate the percentage of your total sales. More than 5% = popular, less than 3% = poor sales.
Calculate the required price increase
For 30% food cost: divide ingredient costs by 0.30. Compare with current price. More than 25% increase = risk of losing customers.
Make the decision based on popularity
Popular + small increase = raise price. Poor sales + large increase = remove from menu. Popular + large increase = look for ways to lower ingredient costs.
✨ Pro tip
Track your 3 worst-performing dishes over 30 days before making any removal decisions. Sometimes a dish just needs better positioning on the menu or staff recommendations to turn around.
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
What if guests specifically ask for a removed dish?
Explain that you work seasonally and suggest a similar alternative. Most guests accept this if you offer a good replacement.
How often should I recalculate my dishes?
At least every 3 months, or immediately after major supplier price increases. Keep an eye on your 5 best-selling dishes monthly.
Can I improve food cost by making the portion smaller?
Yes, but do it subtly. 180g steak instead of 200g is less noticeable than a €3 price increase. Compensate with more vegetables or garnish.
What if an unprofitable dish is part of a menu?
Calculate the total margin of the entire menu. Sometimes a profitable appetizer compensates for a loss on the main course. Look at the bigger picture.
How do I communicate price increases to my team?
Explain why it's necessary and train your staff to explain the added value. A higher price with better ingredients is easier to sell.
Should I test menu changes during busy or slow periods?
Always test during slower periods first. You can gauge customer reaction without risking peak revenue, and staff can handle questions better when it's less hectic.
📚 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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