Many restaurateurs think ugly food automatically means higher profits because of lower purchase prices. But misshapen vegetables cost 30-60% less than A-grade quality while requiring more cutting loss and processing time. Your real margin calculation needs a completely different approach.
Why ugly food margins are different
You're working with products that look different but taste identical. The lower purchase price seems attractive, but there are hidden costs that directly impact your margin.
💡 Example: Misshapen carrots
Comparison A-grade vs ugly food:
- A-grade carrots: €2.50/kg
- Ugly carrots: €1.20/kg (52% cheaper)
- Cutting loss A-grade: 15%
- Cutting loss ugly: 35%
Real price per kg usable product:
- A-grade: €2.50 / 0.85 = €2.94/kg
- Ugly: €1.20 / 0.65 = €1.85/kg
Real savings: 37% (not 52%)
Extra costs you need to factor in
Ugly food demands more processing time. This translates to higher labor costs that must be worked into your margin calculations.
- More cleaning time: Misshapen vegetables carry more dirt, stains or damage
- More cutting work: Irregular shapes demand more time and skill
- Higher waste: More parts that simply aren't usable
- Extra storage: Shorter shelf life means more frequent ordering
⚠️ Note:
Always factor in 20-40% extra processing time in your labor costs. From years of working in professional kitchens, I've seen chefs who normally process 10 kg of carrots in 30 minutes need 40-45 minutes for ugly carrots.
Formula for ugly food margin
You'll need to adjust the standard food cost formula for the extra costs of ugly food:
Adjusted food cost = (Ingredient costs + Extra labor costs + Extra waste) / Sales price excl. VAT × 100
💡 Example: Carrot soup calculation
For 10 portions of carrot soup (sales price €8.50 incl. 9% VAT = €7.80 excl.):
- Ugly carrots: 2 kg at €1.20 = €2.40
- Other ingredients: €8.60
- Extra processing time: 15 min at €18/hour = €4.50
- Extra waste: €1.50
Total costs: €17.00 for 10 portions = €1.70 per portion
Food cost: (€1.70 / €7.80) × 100 = 21.8%
With A-grade carrots this would've been 26.3%.
Positioning and pricing strategy
Ugly food concepts can achieve higher margins through smart positioning. Guests often pay more for sustainability and story.
- Sustainability story: Reducing food waste appeals to many guests
- Seasonal menus: Ugly food varies more, make this a strength
- Transparency: Tell the story on the menu
- Premium positioning: Not as a cheap alternative but as a conscious choice
💡 Example: Menu description
Instead of: "Carrot soup - €8.50"
Write: "Rescued carrot soup from misshapen carrots - €9.50"
The story justifies a higher price and increases your margin.
Suppliers and purchasing
For a successful ugly food concept you need reliable suppliers who can consistently deliver misshapen products.
- Direct farmer contacts: Often the finest prices and stories
- Wholesale ugly food: Companies like Kromkommer or The Ugly Company
- Quality agreements: Ugly is fine, rotten isn't
- Flexible menus: Adapt your menu to what's available
How do you calculate the margin on ugly food? (step by step)
Calculate the real ingredient costs
Measure the cutting loss of your ugly products and divide the purchase price by the yield. Ugly vegetables often have 20-40% more loss than A-grade. Also factor in other ingredients (spices, oil, stock).
Calculate extra labor costs
Measure how much extra time you need to process ugly products. Multiply this by your hourly rate for kitchen staff. Factor in an average of 20-40% extra processing time.
Add everything up and divide by your sales price
Ingredient costs + extra labor costs + extra waste divided by your sales price excl. VAT, times 100 for the percentage. Aim for 25-30% total food cost for a healthy margin.
✨ Pro tip
Track your top 5 ugly vegetables' yield percentages over 30 days and build your core menu around the three most profitable ones. Carrots, potatoes and onions often deliver the strongest margins because they're easier to process despite their shape.
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
Is ugly food always cheaper than regular products?
No, due to higher cutting loss and extra processing time, the savings are often 20-40%, not the 50-70% you see in the purchase price. Always calculate the real cost per usable product.
Can I use ugly food for all dishes?
Not for everything. For dishes where appearance matters (carpaccio, garnish) it works less well. For soups, stews, sauces and ground meat it's perfect.
How do I communicate ugly food to guests?
Focus on the sustainability story, not the price. Use terms like 'rescued vegetables' or 'imperfect produce' and explain that you're reducing food waste.
What if ugly food isn't available?
Build flexibility into your menu. Work with rotating seasonal dishes and always have a backup with regular products. Communicate this as 'subject to availability'.
Do I need to set my food cost differently for ugly food?
Yes, work with 25-30% instead of the standard 28-35%. The extra labor costs require a lower food cost to achieve the same total margin.
How do I track yield percentages for different ugly vegetables?
Keep detailed logs for each vegetable type over 4-6 weeks. Potatoes might yield 75% while cauliflower yields only 55%. Use these numbers in your cost calculations going forward.
📚 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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