Margin on a package deal including

Quick answer

Package deals generate 23% higher profit margins than individual items when priced correctly. But calculating margins on multi-component deals requires factoring in different VAT rates and ingredient costs.

Package deals generate 23% higher profit margins than individual items when priced correctly. But calculating margins on multi-component deals requires factoring in different VAT rates and ingredient costs. Here's your step-by-step approach to profitable package pricing.

What's included in the total cost price?

For a complete package deal, you add up all costs:

Appetizer: all ingredients
Main course: all ingredients including garnish
Dessert: all ingredients
Drinks: wine, beer or soft drink per person
Extras: bread, butter, olive oil, amuse

? Example package deal:

3-course menu with wine for €45.00 (incl. VAT)

Appetizer: €2.80
Main course: €8.50
Dessert: €1.90
Glass of wine: €2.40
Bread + butter: €0.60

Total cost price: €16.20

Calculate VAT correctly

Pay attention to the different VAT rates in your package deal:

Food (appetizer, main, dessert): 9% VAT
Alcoholic drinks: 21% VAT
Non-alcoholic drinks: 9% VAT in restaurant

⚠️ Note:

With a package deal that has different VAT rates, you need to split the selling price. The food portion has 9% VAT, alcoholic drinks 21%.

Calculate margin per component

For an accurate picture, you calculate the margin per component:

? Example calculation:

Package deal €45.00 - split: €35.00 food + €10.00 wine

Food excl. VAT: €35.00 / 1.09 = €32.11
Wine excl. VAT: €10.00 / 1.21 = €8.26
Total excl. VAT: €40.37

Cost price €16.20 / €40.37 = 40.1% food cost

Profit margin per package deal

After the food cost, you calculate your actual margin. Most kitchen managers discover too late that they've forgotten to factor in all the small extras - bread, amuse, garnishes - which can add 15-20% to your true cost.

Selling price excl. VAT: €40.37
Cost price ingredients: €16.20
Gross profit: €24.17 (59.9%)

From this gross profit, you still need to deduct: staff, rent, energy and other costs. For a healthy margin, you should have at least €15-20 per package deal left after all costs.

? Rule of thumb for package deals:

Aim for a maximum of 35% food cost on package deals. The combination gives you more perceived value with your guests.

Individual dishes: 28-33% food cost
Package deals: 30-35% food cost
Group package deals: 25-30% food cost

Digital vs manual tracking

Package deals have many components. Manual tracking in Excel takes time and causes errors. With a system like KitchenNmbrs, you build the package deal from existing recipes and immediately see the total cost price and margin.

How do you calculate the margin on a package deal? (step by step)

List all components

Make a list of each component: appetizer, main course, dessert, drinks, bread, extras. Add up all ingredients per component and calculate the cost price per component.

Split selling price by VAT rate

Divide your package deal price between food (9% VAT) and alcoholic drinks (21% VAT). Calculate both parts excluding VAT for an accurate food cost calculation.

Calculate total food cost percentage

Divide the total cost price by the selling price excluding VAT and multiply by 100. Aim for a maximum of 35% food cost for a healthy margin on package deals.

✨ Pro tip

Track your top 5 package deals over 30 days and optimize those margins first. If these generate under 35% food cost, you'll control 75% of your package profitability.

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Frequently asked questions

Do I need to calculate different VAT rates separately?

Yes, for correct administration you do. But for your food cost calculation, you can use the total selling price excl. VAT. Split your package deal into food portion (9%) and drinks portion (21%).

What is a healthy margin on package deals?

Aim for a maximum of 35% food cost. Package deals can be slightly higher than individual dishes because guests perceive more value. After all costs, you should have at least €15-20 per package deal left.

How often should I adjust my package deal prices?

Check your cost prices every quarter, especially for seasonal products. Suppliers regularly raise prices. If your food cost goes above 35%, adjust your price or composition.

Can I offer package deals cheaper than individual dishes?

Yes, through smart combinations and purchasing advantages you can offer guests more value at lower cost. Use popular main courses with cheaper appetizers and desserts.

What if guests only want the main course from my package deal?

Calculate your individual main course price based on 30% food cost. The package deal can be relatively more affordable to encourage guests to take the complete menu.

Should I include wine pairings in my margin calculations?

Absolutely. Wine has different margins than food - typically 200-300% markup. Calculate wine cost separately since it carries 21% VAT versus 9% on food items.

ℹ️ This article was prepared based on official sources and professional expertise. While we strive for current and accurate information, the content may differ from the most recent regulations. Always consult the official authorities for binding standards.

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.

8 years kitchen manager at 1NUL8 Group Rotterdam

Expertise: food cost management HACCP kitchen management restaurant operations food safety compliance

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