A minimal menu with just eight dishes can actually be very profitable - if you know the margin of each dish precisely. Many restaurants with extensive menus lose money because they have no grip on their food costs. With a small menu you have the chance to optimize each dish perfectly.
Why a small menu can be advantageous
With eight dishes you have a huge advantage: you can calculate each dish in detail. Large restaurants with 40+ dishes often estimate their food costs. You can track every ingredient, every gram, every cent precisely.
💡 Example minimal menu:
Restaurant with 8 dishes analyzes everything:
- Steak: food cost 32%, sells 40×/week
- Salmon: food cost 28%, sells 25×/week
- Pasta: food cost 22%, sells 60×/week
- Risotto: food cost 35%, sells 15×/week
Result: know exactly which dish generates the most profit
Step 1: Calculate the food cost of each dish exactly
For each of your eight dishes, add up all ingredients. Really everything: main ingredient, garnish, sauce, spices, oil, butter, salt, pepper. Don't forget anything.
Food cost formula: Sum of all ingredient costs per portion
⚠️ Note:
Also factor in trimming loss. Whole salmon at €18/kg becomes €32/kg after filleting. Many entrepreneurs forget this and calculate with the wrong purchase price.
Step 2: Determine the food cost percentage of each dish
Divide the food cost by your selling price excluding VAT. This gives you the food cost percentage per dish.
Formula: Food cost % = (Food cost / Selling price excl. VAT) × 100
💡 Example calculation:
Steak on your menu:
- Menu price: €32.00 incl. 9% VAT
- Selling price excl. VAT: €32.00 / 1.09 = €29.36
- Food cost ingredients: €9.40
Food cost: (€9.40 / €29.36) × 100 = 32%
Step 3: Analyze popularity vs profitability
Create an overview of your eight dishes with two columns: how often you sell it (popularity) and what is the food cost (profitability). This gives you four categories:
- Stars: Popular and profitable (food cost under 30%)
- Workhorses: Popular but less profitable (food cost 30-35%)
- Puzzles: Rarely sold but profitable
- Dogs: Rarely sold and not profitable
💡 Example analysis 8 dishes:
- Stars: Pasta (22% food cost, 60×/week)
- Workhorses: Steak (32% food cost, 40×/week)
- Puzzles: Duck breast (26% food cost, 8×/week)
- Dogs: Risotto (35% food cost, 15×/week)
Step 4: Optimize your menu for maximum margin
With eight dishes you can make targeted choices. Promote your Stars, improve your Workhorses, and consider replacing or adjusting Dogs.
For Workhorses you have three options: raise the price, lower the food cost, or adjust ingredients. For Dogs: replace with a dish that works.
⚠️ Note:
Don't immediately replace your least profitable dish if it's popular. Sometimes you can lower the food cost through smarter purchasing or a different supplier.
Calculate average margin
Add up all revenue from your eight dishes and all costs. This gives you total margin. But more importantly: you now know exactly what each dish contributes.
Total margin = (Total revenue - Total costs) / Total revenue × 100
The advantage of KitchenNmbrs for small menus
With an app like KitchenNmbrs you can record all eight recipes with exact food costs. Every time a supplier adjusts their price, you immediately see the impact on your food cost. Perfect for restaurants that want to optimize each dish.
How do you calculate the margin of your 8-dish menu?
Make a list of all 8 dishes
Write down each dish with all ingredients and exact quantities. Also include garnish, sauces and oils. This becomes your basis for all calculations.
Calculate the food cost per dish
Add up all ingredient costs for each dish. Don't forget to factor in trimming loss - whole fish becomes more expensive per kilo after filleting.
Determine food cost percentage per dish
Divide food cost by selling price excluding VAT and multiply by 100. This gives you the food cost percentage per dish.
Track popularity for 2 weeks
Keep track of how much you sell of each dish. You can do this through your POS system or manually with a tally sheet.
Analyze and optimize
Combine popularity with profitability. Focus on dishes that are popular but have too high food cost - that's where your biggest profit is.
✨ Pro tip
Check your top 3 best-selling dishes every week. If those three have a food cost under 30%, your restaurant is probably running well - even with just 8 dishes.
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
Isn't 8 dishes too few for a restaurant?
On the contrary, many successful restaurants deliberately work with small menus. You can perfect each dish, purchase ingredients more efficiently and have less waste.
What is a good food cost for restaurants with a small menu?
Aim for an average of 28-32% food cost. With a small menu you can control this better than restaurants with large menus that often sit around 35%.
How often should I update my food costs?
Check your purchase prices at least monthly and adjust food costs accordingly. With a small menu this takes little time but saves you a lot of money.
What if one dish is very popular but not profitable?
Try first to lower the food cost by finding a different supplier or smaller portions. If that doesn't work, gradually raise the price by €1-2 at a time.
Should I include seasonal dishes in my analysis?
Yes, but calculate with average sales over the entire season. A asparagus dish might sell for 3 months, but then intensively.
How do I prevent guests from not ordering my most expensive dish?
Place your most profitable dish prominently on the menu and train your staff to recommend it. Often this is not your most expensive dish.
⚠️ EU Regulation 1169/2011 — Allergen Information — https://eur-lex.europa.eu/eli/reg/2011/1169/oj
The allergen information on this page is based on EU Regulation 1169/2011. Recipes and ingredients may vary by supplier. Always verify current allergen information with your supplier and communicate this correctly to your guests. KitchenNmbrs is not liable for allergic reactions.
In the UK, the FSA enforces allergen regulations under the Food Information Regulations 2014.
📚 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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