Investors demand concrete figures, not rough estimates. Your cost price calculations form the backbone of profitability discussions and often determine funding approval. Smart presentation shows you've mastered financial control and can deliver realistic projections.
Why cost price calculations matter to investors
Investors have one burning question: will this make money? Your cost price calculations provide the answer. They prove that you:
- Know exactly what each dish costs
- Operate with realistic margins
- Control a competing platformggest expense category
- Can steer toward profitability
⚠️ Watch out:
Investors spot unrealistic numbers instantly. A food cost of 45% or 15% signals you haven't grasped the fundamentals.
Present your cost prices like a pro
Build a clear overview of your most important dishes featuring:
- Ingredient costs per portion
- Selling price excluding VAT
- Food cost percentage
- Gross margin per portion
? Example presentation:
Steak menu (bestseller - 40% of revenue)
- Ingredient costs: €9.50
- Selling price excl. VAT: €29.36
- Food cost: 32.4%
- Gross margin: €19.86 per portion
At 150 portions/week = €154,740 gross margin per year on this dish alone.
Demonstrate your average food cost against benchmarks
Calculate your weighted average food cost across all dishes. Compare this to industry standards:
- Fine dining: 28-35% food cost
- Casual dining: 25-32% food cost
- Fast casual: 20-28% food cost
? Example weighted average calculation:
Restaurant with 5 main courses:
- Steak: 32% food cost, 40% of sales
- Salmon: 28% food cost, 25% of sales
- Pasta: 24% food cost, 20% of sales
- Chicken: 26% food cost, 10% of sales
- Vegetarian: 22% food cost, 5% of sales
Weighted average: (32×0.4) + (28×0.25) + (24×0.2) + (26×0.1) + (22×0.05) = 29.0%
Present different scenarios
Investors need to understand what happens if costs fluctuate. Map out various scenarios:
- Base scenario: Current cost prices
- Inflation scenario: 10% increase in ingredient costs
- Optimistic scenario: Better purchasing, 5% cost reduction
? Example scenario analysis:
Annual revenue: €500,000 at 29% food cost
- Base: €145,000 food cost
- +10% inflation: €159,500 food cost (-€14,500 profit)
- -5% optimization: €137,750 food cost (+€7,250 profit)
Impact on annual basis: €21,750 difference between scenarios
Justify your pricing strategy
Break down how you determined your selling prices. From analyzing actual purchasing data across different restaurant types, investors need proof that your prices aren't guesswork:
- Cost price + desired margin = minimum selling price
- Market research on competitor prices
- Room for price adjustments
⚠️ Watch out:
Always calculate using selling prices excluding VAT. Investors also work excl. VAT and will catch any mix-ups immediately.
Highlight your monitoring system
Investors want assurance that your cost prices stay accurate. Outline how you track this:
- Monthly check: Supplier prices vs. cost price calculation
- Quarterly update: Adjust menu prices if needed
- Digital tracking: Use of software for automatic calculations
Tools like KitchenNmbrs can show that you handle cost prices professionally and maintain real-time insight into your margins.
Related articles
How do you present cost prices to investors? (step by step)
Create a cost price overview of your top 5 dishes
Calculate exactly the ingredient costs, food cost percentage and gross margin per portion. Also show the share of each dish in your total revenue.
Calculate your weighted average food cost
Multiply the food cost of each dish by the sales percentage and add up. This gives you your total food cost percentage for your entire menu.
Create scenario calculations for different cost changes
Show what happens with a 5-15% increase in ingredient costs and how this affects your profit. Also indicate how you can respond to this.
✨ Pro tip
Create a live spreadsheet showing your 3 highest-margin dishes from the past 90 days that you can update during the conversation. Investors value transparency and immediate responses to their financial questions.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
Calculate it yourself?
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Frequently asked questions
What cost price data exactly does an investor want to see?
How do I explain that my food cost is higher than the benchmark?
Should I show all dishes or only the popular ones?
How often should I update my cost prices?
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
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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