Combo deals like 'sandwich + drink' are popular with guests, but can destroy your margin if you calculate them wrong. Many entrepreneurs guess the price and later discover they're losing money on every deal. In this article you'll learn step-by-step how to calculate combo prices that ARE profitable.
Why combo deals are often unprofitable
The problem with combo deals is psychology. You want to make the deal attractive to guests, so you give a discount. But how much discount can you give without losing money?
⚠️ Watch out:
Many food service businesses only calculate ingredient costs. But you also have fixed costs: staff, rent, energy. Those need to be earned back too.
The basics: what does your combo really cost?
For a profitable combo, you first need to know what each component costs individually. Not just the ingredients, but also your desired margin.
💡 Example:
Healthy sandwich + cola combo:
- Healthy sandwich: €8.50 (food cost 30% = €2.55 ingredients)
- Cola: €2.80 (food cost 25% = €0.70 ingredients)
- Total sold separately: €11.30
- Total ingredient costs: €3.25
Calculate your minimum combo price
Your combo price must at minimum cover your ingredient costs plus your desired margin. A typical margin for combo deals is 25-30% food cost.
💡 Minimum price calculation:
Formula: Minimum price = Ingredient costs / (Desired food cost % / 100)
With our example:
- Ingredient costs: €3.25
- Desired food cost: 30%
- Minimum price: €3.25 / 0.30 = €10.83 excl. VAT
- Incl. 9% VAT: €10.83 × 1.09 = €11.80
Combo price: €11.80 (discount from €11.30 to €11.80 = small discount, but profitable)
How much discount can you give?
The maximum discount depends on how much margin you want to keep. The lower your food cost percentage, the more discount you can give.
- At 25% food cost: More room for discount
- At 35% food cost: Less room for discount
- Above 35% food cost: Probably unprofitable
💡 Example different discounts:
Ingredient costs: €3.25, normal price: €11.30
- Combo €10.50: food cost 31% (still OK)
- Combo €9.50: food cost 34% (on the high side)
- Combo €8.50: food cost 38% (unprofitable)
Test your combo deals regularly
Ingredient prices change. What was profitable last month might be unprofitable now. So check monthly whether your combo deals still add up.
⚠️ Watch out:
Popular combo deals can become a large part of your revenue. If they're unprofitable, you won't notice until the end of the month in your results.
Digital help with combo calculations
Manually calculating combo deals takes time, especially if you have multiple deals. A system like KitchenNmbrs can automate this by tracking the cost price of each component and immediately showing what a profitable combo price would be.
How do you calculate profitable combo prices? (step by step)
Calculate the cost price of each component
Add up all ingredient costs from each item in your combo. Don't forget garnish, sauces and drink syrups. Also note the current selling price of each item separately.
Determine your desired food cost percentage
Choose a food cost percentage for your combo, usually between 25-30%. This gives you room for discount but keeps the deal profitable. Calculate: total ingredient costs / (food cost% / 100).
Compare with individual sales and set price
Compare your calculated minimum price with the sum of individual prices. The combo must be attractive to guests but stay above your minimum price. Test different discount percentages.
✨ Pro tip
Check your 3 best-selling combos every month. If those are profitable, you've solved 80% of your combo problems.
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
Should I include VAT in my combo calculation?
Calculate first excl. VAT and then add 9% VAT for the final price. This prevents you from double-counting VAT in your margin calculation.
What if my combo deal becomes more popular than individual sales?
Then it's even more important that your combo is profitable. Check monthly how much of your revenue comes from combos and whether the margin still works.
Can I use different combo prices at different times?
Yes, happy hour combos with lower prices can work, but make sure you stay above your ingredient costs. Calculate how much volume you need to break even.
How often should I adjust my combo prices?
Check at least every 3 months or if your supplier raises prices. Popular combos have a big impact on your total margin, so keep them sharp.
What if guests complain the combo is too expensive?
Explain what they get and compare with individual prices. If the combo really seems too expensive, check if your ingredient costs are correct or consider a smaller portion for a lower price.
📚 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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