Most restaurants chase packed dining rooms while bleeding money on every plate. You'd assume more volume equals more profit, but that's where countless operators get it wrong. If your margins aren't dialed in, each additional customer just amplifies your losses.
Why more volume can be dangerous
Your dining room's buzzing, tickets are flying, and somehow you're still broke at month's end. Every extra seat filled actually drains your account when margins aren't properly calculated.
💡 Example:
You sell a steak for €32.00 (incl. 9% VAT = €29.36 excl. VAT)
- Ingredients: €12.50
- Food cost: 42.6%
- Loss per plate: €2.50
With 100 extra guests = €250 extra loss
The volume trap in numbers
Revenue climbing feels good. But operators forget that each euro earned carries hidden costs that eat away at profits.
⚠️ Watch out:
Food costs above 35% mean you're hemorrhaging money with every order. Higher volume just speeds up the bleeding.
The math's brutal: Loss per dish × Number of dishes = Total loss
Where volume thinking goes wrong
- Portions creep upward: Cooks eyeball portions instead of weighing
- Purchasing runs wild: Ingredient costs spike while menu prices stay frozen
- Waste multiplies: Rush periods create chaos and mistakes
- Errors compound: Wrong proteins, extra sides, comp'd dishes
💡 Example:
Restaurant with 200 covers per day, 6 days per week:
- Food cost too high: 3%
- Average check: €25 excl. VAT
- Extra loss per day: 200 × €25 × 0.03 = €150
Per year: €46,800 loss due to volume
The real solution: fix your margins first, then volume
Before marketing for more covers, ensure every dish actually makes money. That means:
- Drive food costs under 33%
- Lock in exact portion weights
- Price according to true costs
- Slash waste ruthlessly
💡 Example:
The same steak, but now calculated correctly:
- Ingredients: €9.50
- Selling price: €35.00 (€32.11 excl. VAT)
- Food cost: 29.6%
- Profit per plate: €7.50
With 100 extra guests = €750 extra profit
How to tackle this in your kitchen
Start with your top 5 sellers—they're driving 80% of your financial outcome. From analyzing actual purchasing data across different restaurant types, these dishes make or break your bottom line. Calculate exact food costs and verify they're under 33%.
Track costs automatically with tools like KitchenNmbrs so you'll spot money-losing dishes immediately.
How do you check if volume is helping or hurting you?
Calculate your actual food cost
Take your 5 best-selling dishes. Add up all ingredients and divide by the selling price excl. VAT. Are you above 35%? Then you're losing money per dish.
Check your average loss per guest
Multiply the loss per dish by the number of times you sell it. Add up all losses and divide by the total number of guests.
Calculate the impact of more volume
Multiply your loss per guest by the number of extra guests you want. Is the result negative? Then more volume is costing you money.
✨ Pro tip
Track your top 5 dishes' food costs weekly for the next 30 days—supplier price increases happen constantly but menu adjustments lag behind. You'll likely find 2-3 items bleeding money that seemed profitable last quarter.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
Was this article helpful?
Frequently asked questions
But doesn't more revenue mean more profit?
Only if margins are positive per dish. With 40% food costs, each revenue euro creates more loss. Higher revenue just accelerates the financial damage.
Can't I just raise my prices?
You can, but target your worst performers first. Small 5-10% increases on unprofitable items often slip by unnoticed while dramatically improving margins.
How do I know if my food cost is too high?
Target 28-33% for full-service restaurants. Anything above 35% makes profitability nearly impossible after labor, rent, and other operating expenses.
What if my competitor is cheaper?
They might be operating at a loss and heading toward closure. Many restaurants fail because they compete on price rather than value and quality.
📚 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.
Stop losing money in your kitchen
Most restaurants lose 5-15% margin due to invisible mistakes. KitchenNmbrs makes every euro visible — from purchase to plate. Start your free trial and discover where your money is leaking.
Start free trial →