Restaurant De Hoek discovered their five most popular dishes all had food costs above 35% - killing their monthly profits. This scenario plays out in restaurants everywhere: crowd-pleasers get priced aggressively to draw customers, but end up draining margins. Here's how to fix this without scaring away guests.
Why this happens
Popular dishes often get a 'loss leader' price - priced just a bit lower to bring guests in. The problem: if these dishes make up 80% of your revenue, you're barely making anything.
? Example:
Restaurant De Hoek sees in their reports:
- Steak (nr 1 seller): 38% food cost
- Salmon (nr 2 seller): 36% food cost
- Pasta carbonara (nr 3 seller): 35% food cost
- Burger (nr 4 seller): 40% food cost
- Risotto (nr 5 seller): 37% food cost
Average food cost top 5: 37.2% - way too high!
Calculate the impact
First you need to know what this costs you. Add up the revenue from your top 5 dishes and calculate how much you'd earn at a healthier food cost of 30%.
? Calculation:
Top 5 dishes generate €15,000/month in revenue
- Current food cost: 37.2% = €5,580/month
- Healthy food cost: 30% = €4,500/month
- Difference: €1,080/month = €12,960/year
Three options to solve this
You have three strategies to tackle this problem. Each option has pros and cons:
- Option 1: Raise prices on popular dishes
- Option 2: Lower ingredient costs by shopping smarter
- Option 3: Adjust portion sizes
⚠️ Heads up:
Never raise all prices at once. Guests will notice immediately. Go for a phased approach over 2-3 months.
Option 1: Raise prices (carefully)
Start with your number 2 or 3 seller, not your absolute top seller. Test how guests react before moving forward. This is a pattern we see repeatedly in restaurant financials - operators who test price changes on secondary bestsellers maintain customer loyalty while improving margins.
? Example price increase:
Salmon (nr 2 seller) from €24.50 to €26.50:
- Was: €24.50 / 1.09 = €22.48 excl. VAT
- Becomes: €26.50 / 1.09 = €24.31 excl. VAT
- Food cost drops from 36% to 32%
Option 2: Shop smarter
Check if you can get the same quality for less money. Often there's 2-5% profit hidden here.
- Compare prices from 2-3 suppliers for main ingredients
- Negotiate volume discounts
- Check seasonal alternatives (sea trout instead of salmon)
- Look at different cuts of meat (bavette instead of ribeye)
Option 3: Adjust portions
Often the easiest solution: serve 10-15% smaller portions of expensive ingredients. Compensate with more vegetables or garnish.
? Portion adjustment:
Steak from 250g to 200g:
- Meat: €8.00 → €6.40 (-€1.60)
- Extra vegetables: +€0.40
- Net savings: €1.20 per plate
- Food cost drops from 38% to 32%
Which option to choose?
Always start with option 2 (shop smarter) - this has no risk. Then combine option 3 (portions) with careful price increases on your number 2 and 3 sellers.
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Action plan: improve margins on popular dishes
Analyze your top 5 in KitchenNmbrs
Open the overview of your best-selling dishes and note the food cost of each dish. Calculate the average food cost of these top 5.
Calculate the impact on an annual basis
Add up the monthly revenue from your top 5. Calculate how much you'd save if food cost went to 30%. Multiply by 12 for the annual effect.
Compare suppliers for main ingredients
Request quotes for meat, fish and other expensive ingredients from 2-3 different suppliers. Focus on quality, not just price.
Test portion adjustments
Reduce portions of expensive ingredients by 10-15% and compensate with more vegetables or garnish. Test this for 1 week before making it permanent.
Raise prices gradually
Start with your number 2 or 3 seller, not your absolute top seller. Increase by €1-2 per dish and monitor sales figures for 2 weeks.
✨ Pro tip
Test portion reductions on your 3rd and 4th bestsellers first over a 10-day period - guests rarely notice 15% smaller portions here, but you'll immediately see if complaints spike. Only then apply the same reduction to your top 2 dishes.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
Calculate it yourself?
Our free food cost calculator does it in seconds.
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Frequently asked questions
Can I raise all prices at once?
How much can I reduce my portions?
What if guests complain about smaller portions?
What food cost is healthy for popular dishes?
How quickly will I see results from these adjustments?
Should I change recipes to use cheaper ingredients?
What if my top seller has a 45% food cost but drives 30% of revenue?
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
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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