Products that cause excessive waste can destroy your profit margin. A dish appearing as 30% food cost on paper can jump to 40% or higher due to waste. Here's your step-by-step process for deciding which products need removal or adjustment.
First measure the actual waste
Before removing anything, you need to know exactly how much waste each product actually causes. Many entrepreneurs estimate this, but reality often differs dramatically.
💡 Example:
You assume your fresh fish has 10% waste, but after tracking for a week it's actually 25%:
- Purchased: 5 kg salmon at €22/kg = €110
- Sold: 3.5 kg (70% of purchase)
- Wasted: 1.5 kg = €33
Actual cost: €22 / 0.70 = €31.43/kg instead of €22/kg
Calculate the impact on your margin
Waste increases your actual cost price significantly. If your food cost climbs above 35% because of this, you're losing money on that dish.
Formula for actual cost price:
Actual cost price = Purchase price / (1 - Waste percentage)
💡 Example calculation:
Beef carpaccio, selling price €16.50 (incl. 9% VAT):
- Selling price excl. VAT: €15.14
- Purchase price beef: €28/kg
- Waste due to poor planning: 20%
- Actual cost price: €28 / 0.80 = €35/kg
- Portion 120 grams: €4.20
Food cost: €4.20 / €15.14 = 27.7% (still acceptable)
Look at sales frequency
A product causing lots of waste but selling frequently gets judged differently than something rarely ordered. This represents one of the most common blind spots in kitchen management - focusing only on waste percentages without considering volume.
- High sales + high waste: Look for better planning or different supplier
- Low sales + high waste: Prime candidate for removal
- High sales + low waste: Keep it
- Low sales + low waste: Check if you're making enough profit
⚠️ Heads up:
Removing a popular dish can disappoint guests. Try reducing waste first through better planning or smaller orders.
Alternatives to removing items outright
Before completely removing a product, consider these options:
- Make it a daily special: Only offer it when you're confident it'll sell
- Raise the price: Compensate for waste in the selling price
- Adjust portion size: Smaller portions = less risk
- Different supplier: Maybe a more durable product
- Adjust preparation method: Make it last longer
💡 Example alternative:
Instead of removing fresh fish:
- Go from 5 kg per week to 2 kg at a time, order twice
- Waste drops from 25% to 10%
- Actual cost price: €22 / 0.90 = €24.44/kg
- Much better than €31.43/kg with large orders
The final decision
Remove a product if:
- Waste results in food cost above 40%
- It's ordered fewer than 5 times per week
- Alternatives (smaller orders, different preparation) don't help
- You're consistently losing money on it
Keep the product if you can get waste under control and maintain food cost below 35%.
How do you decide which products to remove? (step by step)
Measure actual waste for one week
Track what you purchase and what you throw away per product. Calculate the waste percentage: (thrown away / purchased) × 100. This gives you real numbers instead of estimates.
Calculate actual cost price including waste
Divide your purchase price by (1 - waste percentage). At 20% waste, €20/kg becomes €25/kg. Check if your food cost goes above 35% because of this.
Look at sales frequency and find alternatives
Products that sell well deserve a second chance through smaller orders or different preparation. Products that are rarely ordered and cause a lot of waste can be better removed.
✨ Pro tip
Track waste on your 3 highest-volume dishes for exactly 14 days before making any menu changes. If these perform well, you've addressed 70% of potential waste issues.
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
Should I remove a popular dish if it causes a lot of waste?
Try alternatives first: smaller orders, different supplier, or raise the price. Removing popular dishes can disappoint guests and cost you revenue.
How do I prevent waste with seasonal products?
Make seasonal products daily specials instead of permanent menu items. That way you only order when you're sure it'll sell. This significantly reduces risk.
Can I pass waste costs on to my prices?
Yes, raise your selling price to compensate for waste. Calculate your actual cost price including waste and make sure your food cost stays below 35%.
📚 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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