78% of restaurants that fail within their first year never properly calculated their recipe costs before opening. Most new establishments guess at their food costs and discover too late that their dishes can't generate profit. Testing your recipes beforehand lets you set profitable menu prices from day one.
Why testing beforehand matters
Once you're serving customers, raising prices becomes tricky. Guests already know what they expect to pay. Testing prevents money-losing dishes from ever reaching your menu in the first place.
⚠️ Note:
Always calculate with prices excluding VAT. The price on your menu card includes 9% VAT, but for food cost calculation you use the price excluding VAT.
Gather all ingredients and prices
List every single ingredient per dish. The small stuff matters too:
- Main ingredients (meat, fish, vegetables)
- Garnishes and decoration
- Sauces and dressings
- Oil and butter for cooking
- Spices and seasonings
- Bread or side dishes
Get exact purchase prices from your suppliers. Don't estimate - you'll usually guess too low.
💡 Example:
Steak with fries and vegetables:
- Steak 250g: €6.50
- Fries 200g: €0.80
- Vegetable mix: €1.20
- Butter/oil: €0.30
- Spices/salt: €0.10
Total food cost: €8.90
Account for trimming loss and waste
Whole products yield way fewer usable portions than you'd think. Factor this loss into your food cost:
- Fish (whole to fillet): 40-55% loss
- Meat (trimming): 15-25% loss
- Vegetables (peeling): 15-25% loss
- Lettuce (outer leaves): 10-20% loss
💡 Example:
You buy salmon for €18/kg, but after filleting you have 45% loss:
- Purchase price: €18/kg
- Yield: 55%
- Actual fillet price: €18 ÷ 0.55 = €32.73/kg
For a 180g portion you pay €5.89 instead of €3.24.
Test the food cost percentage
Calculate the food cost percentage for each dish with this formula:
Food cost % = (Cost of ingredients ÷ Selling price excl. VAT) × 100
Target between 28% and 35% for most restaurants. This is a pattern we see repeatedly in restaurant financials - establishments outside this range struggle with profitability.
💡 Example:
Steak food cost €8.90, menu price €32.00 incl. VAT:
- Selling price excl. VAT: €32.00 ÷ 1.09 = €29.36
- Food cost: (€8.90 ÷ €29.36) × 100 = 30.3%
That's a healthy margin for a steak.
Determine your minimum selling price
If your food cost runs too high, calculate what you need to charge minimum:
Minimum price excl. VAT = Food cost ÷ (Desired food cost % ÷ 100)
Then multiply by 1.09 for the price including VAT.
⚠️ Note:
Also test your calculated price fits your target audience and concept. A price that's too high can drive customers away, a price that's too low costs you profit.
Create a test menu and calculate the total
Don't just test individual dishes - test your entire menu composition:
- Calculate the average food cost of all dishes
- Weigh this against expected popularity per dish
- Check if expensive dishes are balanced by cheaper ones
Food cost calculators can handle this automatically and track changes, so you don't have to recalculate manually every time suppliers adjust their prices.
How do you test recipes on food cost? (step by step)
Make a complete ingredient list
Write down all ingredients that go into the dish, including oil, spices and garnish. Ask your suppliers for exact purchase prices.
Calculate food cost per portion
Add up all ingredient costs and factor in trimming loss. Divide purchase prices by the actual yield after processing.
Test the food cost percentage
Divide the food cost by your desired selling price (excl. VAT) and multiply by 100. Aim for 28-35% for restaurants.
Determine your final menu price
If the food cost is too high, calculate your minimum selling price or adjust the recipe. Don't forget to add 9% VAT for the menu card price.
✨ Pro tip
Test your 5 most expensive dishes within 72 hours of receiving final supplier quotes. These represent your biggest profit risk and need immediate validation before menu printing.
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
Do I need to include every small ingredient in the food cost?
Absolutely, even spices and cooking oil count. They seem insignificant per dish, but with hundreds of portions weekly, this adds up to hundreds of euros annually. Missing these costs can push your food cost percentage from 30% to 35% without you realizing it.
What if my food cost exceeds 35%?
You're likely losing money on that dish. Either raise your price, modify the recipe, or source cheaper ingredients without sacrificing quality. Some high-end establishments can push to 38%, but that requires exceptional execution.
How often should I update my recipe costs?
Check purchase prices monthly at minimum. Supplier prices shift constantly, causing your food costs to creep up silently. Weekly checks are even better during volatile periods.
Can I estimate food costs at 30% of my selling price?
That's backwards thinking. Calculate your actual ingredient costs first, then determine your selling price from there. Estimating typically leads to money-losing dishes that kill your margins.
Should delivery packaging be included in food cost?
Yes, packaging costs are part of your total food cost. Factor in containers, bags, and branded stickers - this can add €0.50 to €1.50 per delivery order.
What about seasonal price fluctuations for ingredients?
Test your recipes using peak-season pricing for key ingredients. If your dish works financially during expensive months, it'll be profitable year-round. Build in a 10-15% buffer for volatile items like seafood or specialty produce.
How do I handle recipes with expensive wine or alcohol reductions?
Calculate the actual alcohol that remains after cooking - typically 15-25% stays after simmering. Don't cost the full bottle amount, but factor in the concentrated flavor value you're adding to justify your menu price.
📚 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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