Your average food cost is 32%. Sounds good, right? But what if your steak costs 45% and your pasta 18%? You're making money on pasta and losing it on meat.
Why averages mislead you
Say you sell 5 dishes with these food cost percentages:
💡 Example restaurant:
- Steak: 45% food cost
- Salmon fillet: 38% food cost
- Pasta carbonara: 18% food cost
- Risotto: 22% food cost
- Chicken fillet: 27% food cost
Average: 30% - looks great!
But here's what's really happening. Your steak and salmon drain your profits. Every time you sell them, you become less profitable. Your pasta and risotto compensate for this, but why keep dishes on your menu that lose money?
The hidden profit drains
Most restaurants have 2-3 dishes that consistently cost too much. These profit drains stay invisible if you only look at the average. Something most kitchen managers discover too late: their signature dishes often generate the smallest margins.
⚠️ Watch out:
A dish with 45% food cost means you only keep €16.50 on a €30 steak (excl. VAT). You still need to deduct labor costs, rent, and all other expenses from that.
Impact on your annual profit
The financial damage from profit drains is bigger than you think:
💡 Calculation example:
Steak with 45% food cost instead of desired 30%:
- Selling price: €30 excl. VAT
- Now: €13.50 ingredient costs (45%)
- Desired: €9.00 ingredient costs (30%)
- Loss per portion: €4.50
At 3 steaks per day, 6 days per week:
€4.50 × 3 × 6 × 52 = €4,212 loss per year
On one dish. Say you have 3 profit drains? You're talking about €12,000+ per year leaking away invisibly.
Popular dishes that often lose money
Certain dishes are notorious profit drains, but remain popular with guests:
- Steak and other red meat: High purchase prices, often oversized portions
- Fresh fish: Expensive, lots of trim loss, price fluctuations
- Lobster and shellfish: Extreme purchase prices, little edible meat
- Signature dishes: Many ingredients, complex preparation
- Daily specials: Often priced too low to attract guests
How to discover the real numbers
Stop using averages. Calculate the food cost of each dish separately. Add up all ingredients: main product, sides, sauces, oil, butter, everything that goes on the plate.
💡 Step by step:
For your steak:
- Steak 250g: €8.50
- Potatoes: €0.80
- Vegetables: €1.20
- Sauce: €0.90
- Butter/oil: €0.30
- Garnish: €0.40
Total: €12.10 on €30 = 40.3% food cost
Now you see the problem. This dish is costing you money.
The solution: action per dish
Once you know the spread, you can take targeted action:
- Profit drains: Raise the price or adjust ingredients
- Profit makers: Promote more, sell more often
- Borderline dishes: Small adjustments make a big difference
⚠️ Watch out:
Don't raise all prices at once. Guests will notice that. Focus first on the worst profit drains.
A system like KitchenNmbrs automatically calculates food cost per dish, so you immediately see which dishes are profitable and which aren't. No Excel sheets, no manual calculations.
How do you discover your loss-makers? (step by step)
Choose your 5 best-selling dishes
Start with the dishes you sell most often. These have the biggest impact on your profit. Note the selling price for each dish and all the ingredients it contains.
Calculate the exact ingredient costs per dish
Add up all costs: main product, sides, sauces, oil, butter, everything. Don't forget trim loss on meat and fish. This is often underestimated.
Calculate the food cost percentage per dish
Divide the ingredient costs by your selling price excl. VAT and multiply by 100. Dishes above 35% are probably costing you money.
✨ Pro tip
Calculate food costs for your 8 highest-selling dishes over the past 30 days. The ones above 35% are bleeding your profits dry, even if your overall average looks acceptable.
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 is an acceptable food cost for expensive dishes like steak?
Even for premium dishes: try to stay under 35%. Guests pay more for steak, so you can charge a higher price that compensates for the food cost.
Can I compensate for loss-makers with profitable dishes?
You can, but it's risky. If guests mainly order your loss-makers, you'll consistently earn too little. Better to make every dish profitable.
How often should I check food cost per dish?
At least 1× per month for your top sellers. Suppliers regularly raise prices, so what was profitable last month might be losing money now.
What if my most popular dish is a loss-maker?
Raise the price gradually (€1-2 at a time) or adjust ingredients. Smaller portions or cheaper sides can make a big difference without losing quality.
Should I include labor costs in food cost?
No, food cost is ingredients only. But realize: after 35% food cost, there's little left for wages, rent, and profit. That's why 35% is often the maximum.
How do I calculate food cost for dishes with varying portion sizes?
Weigh your actual portions for a full week, then use the average weight. Many chefs discover their portions vary by 20-30% between different cooks.
📚 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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