How to optimize your margins per dish, reduce material costs and set data-driven prices.
The most important step to better margins is an exact calculation of every single dish. Many restaurateurs only roughly estimate their food costs – which often leads to nasty surprises at the end of the month. Record all ingredients with current purchase prices, including spices, oils and garnishes. Only when you know what a dish really costs can you set the right price.
Food cost is the number one metric in gastronomy. It shows you what percentage of your revenue goes to ingredients. A good benchmark is 25-30%. Check this metric monthly and compare it with your targets. If food costs rise, react immediately: Check purchase prices, portion sizes and possible shrinkage.
Instead of setting prices by feel, use your calculation data. Calculate the minimum selling price for each dish based on your target food cost. Also consider factors like preparation effort, presentation and target audience. Expensive dishes with low margins can be balanced by affordable dishes with high margins on the menu.
Without standardized portions, every calculation is just theory. Create a recipe card for each dish with exact quantities and portion sizes. Train your kitchen team on these standards. Use scales and portioners to achieve consistent results. A deviation of just 10% in portions can significantly reduce your margin.
Regularly analyze which dishes sell well and which have the best margins. Prioritize 'Stars' (popular and profitable) on your menu and rework 'Dogs' (unpopular and unprofitable). Place high-margin dishes in prominent positions on the menu. This actively steers what your guests order – and your margin increases automatically.
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