Picture this: your chef keeps using expensive ingredients while you're worried about rising costs. Most restaurant owners keep their financial figures locked away, but this secrecy often backfires. Open up about your margins, and you'll discover something remarkable happens.
Why secrecy backfires
Most hospitality entrepreneurs guard their margins like state secrets. Feels logical - numbers seem sensitive. But this approach breeds confusion and resentment. Your chef can't grasp why truffle portions matter. Your server doesn't get why wine prices need adjusting.
⚠️ Note:
Without context, all cost savings seem arbitrary. Your team feels controlled rather than involved.
The fallout? Pushback on changes, stifled creativity, and that toxic "us versus them" dynamic between ownership and staff.
What transparency about figures does
Show your team what a dish actually costs versus what it brings in - watch the mindset shift happen. Instead of "here goes the boss penny-pinching again," they start asking "how do we boost this dish's profitability without killing quality?"
💡 Example:
Your signature steak sells for €32.00 (€29.36 excl. VAT):
- Meat: €12.50
- Garnish: €2.80
- Sauce and butter: €1.20
Food cost: 56.2% - dangerously high!
Your chef sees these numbers and suddenly gets it. He's brainstorming solutions: adjust portion sizes, explore different cuts, rethink garnishes. No micromanaging required.
How to share your figures without revealing everything
You don't need to open your complete books. Focus on numbers that directly impact their daily work:
- Food cost per dish: Production costs versus revenue
- Daily waste expenses: What's hitting the trash bin
- Popular versus profitable items: What moves fast and what makes real money
💡 Example conversation:
"Our carbonara flies out the kitchen, but check these numbers:"
- Selling price: €16.50 (€15.14 excl. VAT)
- Ingredient costs: €5.80
- Food cost: 38.3%
"How do we get this under 35% while keeping customers happy?"
The power of thinking along instead of just executing
Staff who understand the numbers operate differently. They monitor portion control, suggest alternatives, and generate ideas. This collaborative approach crushes top-down mandates every time.
Here's what starts happening:
- Your chef proposes swapping pricey shrimp for mussels in that risotto
- Servers naturally push the money-making dishes
- Everyone becomes waste-conscious because they see the real cost
💡 Example impact:
Restaurant serving 80 covers daily, 6 days weekly:
- Food cost drops from 36% to 31% through team awareness
- On €400,000 yearly revenue: €20,000 additional profit
- Zero quality compromises or staff cuts
One of the most common blind spots in kitchen management is assuming staff will care about costs without understanding why those costs matter. Once they see the connection between smart choices and business health, everything changes.
Boundaries and privacy
You don't owe anyone your entire financial picture. Keep these private:
- Payroll details and individual salaries
- Complete profit and loss statements
- Rent and fixed overhead expenses
- Personal expenses and investment plans
Stick to operational data that connects to their responsibilities. That's plenty to spark engagement.
Practical implementation
Build trust gradually with small steps:
- Pick one popular dish: Show the complete cost breakdown
- Invite collaboration: "What ideas do you have to improve profitability?"
- Act on suggestions: Demonstrate you value their input
- Report back: "Your suggestion dropped food cost from 38% to 33%"
Food cost management tools make these calculations simple and shareable, eliminating hours of manual number-crunching.
How do you effectively share margins with your team?
Choose your focus dishes
Start with your 3-5 best-selling dishes. Calculate the exact food cost of each dish including all ingredients, garnishes and sauces. This gives you concrete figures to work with.
Organize a team meeting
Plan a quiet moment to discuss the figures. Explain why you're sharing this: not to control, but to get better together. Show the food cost percentages and explain what's standard (28-35%).
Ask for concrete ideas
Ask open questions: 'How can we lower the food cost of this dish without compromising quality?' Write down all suggestions and discuss feasibility. Implement the best ideas and share the results.
✨ Pro tip
Share your weekly waste costs with the kitchen team - revealing that €180 worth of food hit the trash in 7 days creates immediate awareness without exposing sensitive margin data. Most chefs are shocked by the actual dollar amount.
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
Won't my staff get nervous seeing financial figures?
Actually, mystery creates more anxiety than transparency. People relax and cooperate when they understand the reasoning behind decisions. Stick to operational numbers, not your complete P&L.
What if my team thinks my margins are too low?
Educate them about industry standards - most restaurants target 28-35% food costs. Explain that thin margins mean limited funds for raises, better ingredients, or equipment upgrades.
How much cost detail should I actually share?
Only what affects their daily work: ingredient expenses, food cost percentages, and waste tracking. Keep payroll, rent, and total profits confidential.
What if my chef gets too creative with cheap ingredients?
Establish quality non-negotiables upfront. The goal is smarter spending, not corner-cutting. Discuss which ingredients are untouchable and why standards matter for your brand.
📚 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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