Are you leaving money on the table with your current menu pricing? Most restaurant owners track total purchasing costs but overlook the detailed analysis needed to optimize margins. By breaking down purchasing figures dish by dish, you'll uncover hidden opportunities to boost profitability.
Collect your purchasing figures per dish
Start by mapping out your actual purchasing costs. Not what you think it costs, but what you actually pay your suppliers.
💡 Example:
Steak menu for €32.00 (incl. 9% VAT):
- Steak 200g: €6.40
- Fries 300g: €0.45
- Vegetables: €1.20
- Sauce: €0.35
- Butter/oil: €0.25
Total ingredient costs: €8.65
Pick your 10 highest-volume dishes and calculate what the ingredients actually cost. Include everything: main components, garnishes, sauces, and even the cooking oil.
Calculate your current food cost per dish
Now you can determine what percentage of your selling price goes to ingredients. This gives you your food cost percentage.
Formula: Food cost % = (Ingredient costs / Selling price excl. VAT) × 100
💡 Example calculation:
Steak from above:
- Menu price: €32.00 incl. VAT
- Excl. VAT: €32.00 ÷ 1.09 = €29.36
- Ingredients: €8.65
- Food cost: (€8.65 ÷ €29.36) × 100 = 29.5%
Build a spreadsheet showing all your dishes with their food cost percentages. Anything above 35% typically signals underpricing. This type of systematic analysis is one of the most common blind spots in kitchen management - many operators rely on gut feeling rather than hard numbers.
Identify opportunities for price increases
Now comes the strategic part: which dishes can you price higher without alienating customers?
- High-volume dishes with elevated food costs: These offer the biggest impact
- Signature specialties: Items customers can't find elsewhere
- Premium ingredient dishes: Wagyu, lobster, truffle - diners expect premium pricing
⚠️ Heads up:
Avoid raising all prices simultaneously. Test with 2-3 dishes first and gauge customer response.
Calculate the impact of price adjustments
For each dish you're considering adjusting, calculate what a price increase means for your bottom line.
💡 Example impact:
Steak from €32.00 to €35.00:
- New price excl. VAT: €32.11
- New food cost: (€8.65 ÷ €32.11) × 100 = 26.9%
- Extra margin per portion: €2.75
- At 50 portions/month: €1,650 extra per year
Monitor the results
After implementing price changes, track these three metrics:
- Sales volume: Has demand for this dish declined?
- Customer reactions: Any complaints about the new pricing?
- Overall revenue: Does the higher price offset any volume decrease?
If sales drop less than 10%, you've likely made a successful adjustment. Tools like KitchenNmbrs can help you track these changes over time.
How do you analyze purchasing figures for better prices? (step by step)
Collect exact purchasing costs
Get your supplier invoices from the last month. Work out what each ingredient costs per portion, including garnishes and sauces. Add everything together for your complete dish.
Calculate food cost percentage
Divide the ingredient costs by your selling price excluding VAT and multiply by 100. Dishes above 35% food cost are candidates for price increases.
Test price adjustments carefully
Start with your 2-3 most popular dishes with high food cost. Raise the price by €2-3 and monitor sales figures for 4 weeks.
✨ Pro tip
Analyze your top 8 revenue-generating dishes every 6 weeks for food cost drift. These items typically represent 60-70% of your kitchen's profit impact.
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 food cost percentage is acceptable for restaurants?
A typical food cost runs between 28% and 35%. Below 28% often indicates overpricing, while above 35% usually means you're losing money on those dishes.
How often should I recalculate purchasing figures?
Review your figures monthly at minimum, but check bi-weekly if you have suppliers with frequent price fluctuations. This prevents you from operating with outdated cost data for extended periods.
Should I factor in seasonal price variations?
Absolutely, especially for produce and seafood. Design seasonal menus with adjusted pricing, or build your core menu around ingredients with stable costs year-round.
📚 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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