A three-course menu normally priced at €65 suddenly drops to €39.95 during Restaurant Week. You're attracting crowds, but are you actually making money? The math behind fixed-price promotions reveals if you're building your business or slowly bleeding cash.
Why Restaurant Week menus threaten your profit margins
Fixed-price promotions typically slash your revenue by 30-40% per guest. But your rent doesn't drop, staff wages stay the same, and utilities keep running.
⚠️ Watch out:
Packed dining rooms can mask serious profit problems. A restaurant full of guests losing €2 per plate isn't successful—it's expensive marketing.
Calculate your true Restaurant Week food costs
Start by adding every expense that touches the plate:
- Raw ingredients: every component across all three courses
- Presentation extras: garnishes, special plating elements
- Portion adjustments: many operators increase sizes for promotions
- Kitchen waste: factor in 5-10% for prep loss and mistakes
💡 Example:
Restaurant Week menu at €39.95 (including 9% VAT):
- Starter (beef carpaccio): €3.20
- Main (pan-seared salmon): €8.90
- Dessert (house tiramisu): €2.40
- Bread service: €0.80
- Waste factor (8%): €1.25
Total ingredient cost: €16.55
Determine your promotional food cost percentage
Calculate what portion of your discounted price goes straight to ingredients:
Formula: Food cost % = (Total ingredient costs ÷ Net selling price) × 100
💡 Working the numbers:
€39.95 menu with 9% VAT:
- Net selling price: €39.95 ÷ 1.09 = €36.65
- Ingredient costs: €16.55
- Food cost percentage: (€16.55 ÷ €36.65) × 100 = 45.2%
That's way above the standard 28-35% range.
Factor in your complete cost structure
High food costs don't guarantee losses if you account for operational realities. Your other expenses don't scale with discounts—something most kitchen managers discover too late.
- Labor expenses: same kitchen team, same service hours
- Overhead costs: rent, insurance, utilities unchanged
- Equipment depreciation: fixed regardless of menu price
The critical question: does enough margin remain after covering all expenses?
💡 Complete margin breakdown:
Restaurant Week menu at €36.65 net:
- Food costs: €16.55 (45.2%)
- Labor allocation: €8.00 (21.8%)
- Operating expenses: €6.00 (16.4%)
- Net profit: €6.10 (16.6%)
Still profitable, but operating on razor-thin margins.
Protect your margins with strategic choices
Smart operators use specific tactics to maintain profitability during promotions:
- Seasonal sourcing: build menus around ingredients at peak availability
- Controlled portions: maintain standard sizes, enhance visual appeal instead
- Beverage focus: recover margin through wine pairings and cocktails
- Course balancing: pair high-cost proteins with lower-cost starters and desserts
⚠️ Smart move:
Focus dessert spending on presentation over expensive ingredients. A €1.20 panna cotta with elegant plating feels as premium as a €4.50 chocolate soufflé.
Calculate your guest volume break-even point
Restaurant Week succeeds if increased traffic compensates for reduced per-plate profit. Calculate your required volume increase:
- Regular menu profit per guest: €18
- Restaurant Week profit per guest: €6
- Profit reduction: €12 per guest
You'll need triple the guest count to match regular revenue. And that's just to break even.
Track performance throughout the promotion
Monitor these metrics daily to verify your projections:
- Ingredient usage: does consumption align with covers served?
- Kitchen waste: are prep losses matching estimates?
- Add-on sales: what percentage of guests order beverages or extras?
- Guest retention: how many return at full prices afterward?
How do you calculate the margin on a Restaurant Week menu?
Calculate total ingredient costs
Add up all costs: appetizer, main course, dessert, bread, garnish, and add 5-10% extra for waste and trim loss. Don't forget small things like oil, spices, and butter.
Calculate your food cost percentage
Divide ingredient costs by your selling price excl. VAT and multiply by 100. For Restaurant Week, this is often between 40-50%, much higher than normal.
Subtract all other costs
Calculate labor costs, rent, and other costs per plate. What's left is your profit per Restaurant Week menu. Check if this is enough to meet your goals.
✨ Pro tip
Calculate your exact break-even point for each dish before Restaurant Week starts—you need 72 hours to adjust recipes if margins don't work. Most operators realize their salmon course needs a €2 cost reduction when it's already too late to change suppliers.
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 Restaurant Week menus?
Food costs of 40-50% are typical for Restaurant Week, well above the standard 28-35%. The key is ensuring your total profit margin stays positive after all expenses.
Should I calculate Restaurant Week margins including or excluding VAT?
Always work with net prices excluding VAT. A €39.95 menu with 9% VAT equals €36.65 net, which is your actual revenue for margin calculations.
How can I prevent losses during Restaurant Week promotions?
Focus on seasonal ingredients, maintain normal portion sizes, and emphasize beverage sales. Track daily performance against projections and adjust quickly if numbers don't align.
At what point does Restaurant Week become unprofitable?
If your profit per plate drops below €3-5, or food costs exceed 55%, you're likely losing money. Fixed costs like rent and labor need adequate coverage to justify the promotion.
Should I create larger portions for Restaurant Week menus?
Keep portions at regular sizes and invest in presentation instead. Oversized portions inflate food costs further and create unrealistic expectations for future visits.
How do I price wine pairings for Restaurant Week menus?
Price wine additions at 60-70% of regular markup to recover food cost losses while staying competitive. A €15 pairing can add €8-10 in pure profit.
What's the minimum guest increase needed to justify Restaurant Week?
If your regular profit is €18 per guest and Restaurant Week yields €6, you need at least 3x the normal covers just to break even. Factor in increased labor costs for higher volume 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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