Think of a money-losing chef's special like a beautiful car with a gas leak - everyone admires it, but it's bleeding you dry with every mile. The dish draws compliments from guests while quietly draining your profits. You're stuck between keeping customers happy and keeping your business afloat.
First, analyze the numbers
Before making any moves, you need hard data on exactly how much you're hemorrhaging. Calculate the dish's true cost and stack it against your selling price.
💡 Example:
Chef's special ribeye with truffle sauce for €42.00 (incl. 9% VAT):
- Ribeye 300g: €16.50
- Truffle sauce: €4.20
- Garnishes: €3.80
- Other ingredients: €2.50
Total ingredient costs: €27.00
Selling price excl. VAT: €38.53
Food cost: 70% - This dish is losing money!
Four options to solve the problem
Option 1: Raise the price
The most straightforward fix is bumping the menu price to hit a profitable 30-35% food cost.
💡 Calculate new price:
With ingredient costs of €27.00 and target food cost of 33%:
Minimum price excl. VAT = €27.00 / 0.33 = €81.82
Menu price incl. VAT = €81.82 × 1.09 = €89.18
From €42 to €89 - that's more than double!
⚠️ Watch out:
Price jumps over 50% typically scare off customers. Test smaller 10-15% increases first.
Option 2: Adjust ingredients
Preserve the dish's soul but swap pricey components for budget-friendly alternatives.
- Meat: Switch ribeye for bavette or entrecote (saves €8-12/kg)
- Sauce: Ditch truffle sauce for mushroom sauce with truffle oil
- Portion size: Trim from 300g to 250g meat
- Garnishes: Use seasonal vegetables instead of exotic ingredients
💡 Adjusted version:
- Bavette 250g: €10.50
- Mushroom sauce: €2.80
- Seasonal vegetables: €2.20
- Other ingredients: €2.00
New ingredient costs: €17.50
Food cost at €42: 45% - still high, but manageable
Option 3: Reposition the dish
Transform it into a premium experience that justifies higher prices through elevated presentation and service.
- Serve on heated stone plate
- Include an amuse-bouche
- Brand as 'chef's signature creation'
- Gradually increase price to €55-65
Option 4: Remove the dish
Sometimes cutting your losses means cutting the dish entirely. After managing kitchen operations for nearly a decade, I've learned that emotional attachment to menu items can be expensive.
⚠️ Watch out:
Removing popular dishes can upset regulars. Introduce a replacement before pulling the current one.
How to choose the right option?
Your decision hinges on your clientele, restaurant concept, and the dish's popularity.
- Casual dining: Ingredient adjustments usually work
- Fine dining: Repositioning as premium typically succeeds
- Bistro/brasserie: Modest price bump plus minor tweaks
- Budget restaurant: Remove and replace
Track the results
Whatever route you pick, monitor the impact closely. Watch sales volume, average check size, and total profitability.
💡 Key metrics:
- Weekly sales volume (pre and post changes)
- Food cost percentage of modified dish
- Average check for customers ordering this item
- Customer feedback about changes
How do you tackle a losing chef's special? (step by step)
Calculate the exact food cost
Add up all ingredient costs and divide by the selling price excl. VAT. Multiply by 100 for the percentage. Above 35% usually means a loss.
Determine the desired food cost
For most restaurants, the ideal food cost is between 28-35%. Calculate what the minimum selling price should be: ingredient costs divided by desired food cost percentage.
Choose your strategy
Compare the current price with the required price. If the difference is small, you can raise the price. If it's large, you need to adjust ingredients or remove the dish.
Test and monitor
Implement the change and measure the effect over 4-6 weeks. Pay attention to sales volume, guest satisfaction, and the impact on your overall profit.
✨ Pro tip
Track your money-losing specials for exactly 30 days using tools like a food cost calculator. You'll spot patterns in ordering frequency and can make data-driven decisions instead of guessing which dishes are actually profitable.
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
Can I keep a losing dish if it attracts many guests?
Only if those customers also order high-margin items. Calculate the total spend of guests who order your chef's special. If their average check is high enough, the dish can work as a loss leader.
How do I explain price increases to upset customers?
Focus on quality and ingredient improvements rather than costs. Mention better sourcing or supplier price changes. Give regulars advance notice so they can adjust expectations.
What if I change ingredients but guests notice and complain?
Test the modified version with trusted customers or staff first. Keep the dish's core identity intact and frame changes as 'improvements' rather than cost-cutting measures.
How often should I recalculate chef's special costs?
Every 3 months minimum, or immediately after supplier price hikes. Seasonal ingredients can fluctuate monthly, so track those more frequently.
Can I offer the chef's special as a limited-time weekly deal?
Yes, but calculate weekly impact carefully. If you lose money one day but the other six days compensate through increased traffic, it might work for overall profitability.
Should I warn staff before making changes to popular dishes?
Absolutely - brief your team on modifications and reasons behind them. They'll face customer questions and need confident, consistent answers about any changes.
📚 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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