Popular dishes that barely turn a profit can slowly bleed your restaurant dry. Sure, customers keep ordering them, but you're earning pennies while your food costs spiral. Here's how to fix this without alienating your regulars.
Crunch the actual numbers first
You can't fix what you haven't measured properly. Pull up your sales data and calculate exactly how much this dish is costing you per week.
💡 Example:
Your Caesar Salad sells like crazy (30 orders weekly) but kills your margins:
- Menu price: €14.50 incl. VAT (€13.30 excl.)
- Raw ingredient cost: €5.20
- Food cost percentage: 39% (ouch!)
- Profit per plate: €8.10
Annual profit loss vs. 30% target: €1.20 × 30 × 52 = €1,872
Option 1: Bump up the price
The straightforward fix. Raise that price until your food cost hits your target percentage. But brace yourself – some customers might balk.
💡 Example:
To hit 30% food cost with €5.20 ingredients:
- Required price excl. VAT: €5.20 ÷ 0.30 = €17.33
- With 9% VAT: €17.33 × 1.09 = €18.89
- Round to: €18.90
That's a €4.40 jump – 30% higher than before
⚠️ Watch out:
Price hikes over 20% can spook customers. Try a modest €1-2 increase first and see how they react.
Option 2: Slash those ingredient costs
Hunt down every unnecessary expense in that recipe. From analyzing actual purchasing data across different restaurant types, portion creep and premium garnishes are usually the biggest culprits.
- Portion control: Are you being too generous? Trimming 20% often saves €1+ per dish
- Ingredient swaps: Switch that pricey parmesan for grana padano, fresh herbs for dried
- Fancy garnishes: Those decorative pine nuts? They're costing you €0.80 per plate
- Supplier shopping: Get quotes from different vendors for your main ingredients
💡 Example cost cuts:
Caesar Salad makeover:
- Parmesan: 30g down to 20g saves €0.60
- Homemade croutons instead of bought: saves €0.40
- Chicken portion: 150g to 120g saves €0.80
New ingredient cost: €3.40 (down from €5.20) = 26% food cost
Option 3: Steer them toward pricier versions
Keep serving that crowd-pleaser, but train your team to nudge customers toward upgraded variants with fatter margins.
- Premium add-ons: Caesar with grilled prawns (+€6, costs you +€2.50)
- Combo deals: Caesar plus soup and bread (+€4, costs +€1.20)
- Smart menu design: Position the expensive version prominently
- Server training: Teach staff to suggest upgrades naturally
Option 4: Cut it from the menu entirely
Sometimes you've got to be ruthless. If a dish consistently loses money despite its popularity, it's literally costing you cash every time someone orders it.
⚠️ Watch out:
Think twice before axing signature dishes. Some loss leaders bring in customers who then order high-margin items.
How to pick your strategy
Your situation dictates the right move:
- Minor margin problem (32-35%): Start with cost reduction
- Major margin disaster (35%+): Combine price hikes with cost cuts
- Restaurant signature: Focus on upselling premium variants
- Easily replaceable: Consider menu removal
Test one change at a time so you can track what actually works. And don't forget – a dish with 33% food cost that takes your chef 15 minutes isn't necessarily better than one with 30% food cost and 5-minute prep time.
How do you tackle a popular dish with low margin?
Measure the current situation
Calculate the exact food cost of the dish and count how many times per week it's sold. Work out how much money you 'lose' per year compared to your desired margin.
Choose your strategy
Decide whether you'll raise the price, lower costs, upsell to a premium variant, or replace the dish. For small shortfalls (32-35% food cost), try cost reduction first.
Test and measure the result
Make one change at a time and measure the impact after 2-4 weeks. Watch both the new margin and any change in sales numbers.
✨ Pro tip
Track your three most popular low-margin dishes over the next 30 days and calculate their true weekly profit loss. You might discover that keeping them is costing you more than removing your least popular items entirely.
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
How much can I raise the price without scaring customers away?
Price bumps of €1-2 usually fly under the radar. Anything over 20% gets risky territory. Start small and watch how your regulars react.
What if this dish is our signature item?
Never axe signature dishes lightly – they often bring in customers who order profitable sides and drinks. Focus on trimming costs or creating premium variants instead.
How do I know if my food cost percentage is actually problematic?
Food costs above 35% spell trouble for most restaurants. The 32-35% range is borderline concerning. Under 30% means you're in good shape.
Can I just shrink the portions without anyone noticing?
Reducing portions by 10-15% typically goes unnoticed. Push it to 20% or more and customers start complaining. Test it quietly on a few tables first.
What if customers complain about the higher prices?
Be honest about rising ingredient costs while maintaining quality standards. Offer a budget alternative if possible. Many customers will pay more for consistent quality.
Should I factor in prep time when calculating profitability?
Absolutely. A dish with 33% food cost taking 15 minutes prep can be less profitable than one with 30% food cost and 5-minute assembly. Labor costs matter too.
📚 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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