📝 Anyone who sells food · ⏱️ 2 min read

How do I calculate the cost price of a product I offer...

📝 KitchenNmbrs — · updated 07 Apr 2026

Quick answer
Many restaurant owners assume fresh and frozen versions of the same product share identical cost structures. But that's a costly mistake. Processing times, purchase prices, and waste percentages vary dramatically between variants, making separate calculations essential for protecting your margins.

Many restaurant owners assume fresh and frozen versions of the same product share identical cost structures. But that's a costly mistake. Processing times, purchase prices, and waste percentages vary dramatically between variants, making separate calculations essential for protecting your margins.

Why separate cost prices are necessary

Most operators think fresh and frozen carry the same cost price since it's essentially the same product. Wrong assumption. Critical differences exist:

  • Purchase price: Frozen runs 20-40% cheaper per kilo
  • Processing time: Thawing demands extra time and advance planning
  • Waste: Frozen carries less spoilage risk
  • Quality difference: Fresh typically commands higher selling prices

? Example:

Salmon fillet for 200 gram portion:

  • Fresh: €18.00/kg = €3.60 per portion
  • Frozen: €12.00/kg = €2.40 per portion
  • Difference: €1.20 per portion

At 100 portions per week, this saves €6,240 per year

Cost price calculation per variant

Calculate every cost component separately for each variant. Same formula, different inputs:

Cost price = Purchase price + Processing costs + Waste + Other costs

? Example calculation:

Steak 250 gram - fresh vs frozen variant:

Fresh steak:

  • Purchase: €24.00/kg = €6.00 per portion
  • Processing: €0.50 (ready to use)
  • Waste: 5% = €0.30
  • Other: €0.20

Total fresh: €7.00

Frozen steak:

  • Purchase: €16.00/kg = €4.00 per portion
  • Processing: €0.80 (thawing + prep)
  • Waste: 2% = €0.08
  • Other: €0.20

Total frozen: €5.08

Estimate processing costs correctly

Here's one of the most common blind spots in kitchen management: underestimating or completely forgetting processing costs for frozen products. Frozen items demand more labor:

  • Thawing time: 2-24 hours advance planning required
  • Extra handling: Retrieving from freezer, monitoring, rotating
  • Quality check: Post-thaw inspection necessary

⚠️ Note:

Base processing costs on your actual kitchen hourly rate. Chef costs €20 per hour and frozen needs 2 extra minutes? That's €20 ÷ 60 × 2 = €0.67 additional per portion.

Determine selling prices per variant

Different cost prices enable different selling strategies. Smart restaurants already capitalize on this:

  • Fresh: Premium pricing, higher margin percentage
  • Frozen: Lower price point, identical absolute euro margin

? Example pricing:

Targeting 30% food cost:

  • Fresh steak: €7.00 ÷ 0.30 = €23.33 excl. VAT = €25.43 incl. VAT
  • Frozen steak: €5.08 ÷ 0.30 = €16.93 excl. VAT = €18.45 incl. VAT

Difference: €7.00 menu price at identical margin percentage

Administration and registration

Maintain separate system entries for both variants. This prevents confusion and calculation errors:

  • Create distinct recipes ("Fresh salmon" vs "Frozen salmon")
  • Register separate suppliers and pricing
  • Track inventory independently per variant

Systems like KitchenNmbrs allow easy management of multiple dish variants, each with distinct cost prices and ingredient specifications.

Related articles

How do you calculate cost price for fresh and frozen? (step by step)

1

Gather purchase prices for both variants

Note the exact purchase price per kilo for both the fresh and frozen product. Check with your supplier if there are different delivery terms (minimum order, delivery time).

2

Calculate processing costs per variant

Measure how much extra time frozen products cost (thawing, extra handling). Multiply this by your kitchen hourly rate to calculate the extra processing costs.

3

Estimate waste percentage

Fresh usually has 3-8% waste due to limited shelf life. Frozen often 1-3% because it lasts longer. Calculate this percentage into your purchase price.

4

Create separate recipes

Register both variants as separate dishes in your system. Use clear names like "Fresh steak" and "Frozen steak" to prevent confusion.

5

Determine selling prices per variant

Calculate the minimum selling price for each variant using your desired food cost percentage. You can deliberately use different margins: higher percentage on fresh, lower absolute euros on frozen.

✨ Pro tip

Track your fresh versus frozen sales ratios weekly for 6 weeks. If 85% of customers consistently choose the lower-priced option, consider switching entirely to frozen and boosting your margins by €1-3 per portion.

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

Can't I just use one average cost price?
That's risky because you won't identify which variant generates profit. Calculate with averages while buying mostly frozen, and you'll overestimate costs. Reverse that scenario, and you're losing money without knowing it.
How much difference exists between fresh and frozen typically?
Frozen usually costs 20-40% less to purchase but requires 10-20% more processing time. Net difference typically ranges €0.50 to €2.00 per portion, depending on the specific product.
Should I use different menu prices for each variant?
You can, but it's optional. Many restaurants maintain identical menu prices while earning higher margins on frozen variants. Others deliberately offer "premium fresh" alongside "standard" options.
What if my supplier delivers both variants?
Request separate price lists and delivery terms. You can often buy frozen in bulk quantities at better rates, while fresh requires daily or every-other-day deliveries.
How do I calculate labor costs for thawing accurately?
Time the actual thawing process including all handling steps. Multiply total minutes by your kitchen's hourly labor rate divided by 60. Don't forget to include quality checking time after thawing.
Can I switch between variants based on seasonal pricing?
Absolutely, but update your cost calculations immediately. Fresh prices fluctuate more dramatically with seasons, while frozen remains relatively stable. Track both variants' costs monthly to optimize purchasing decisions.
What's the best way to track waste percentages for each variant?
Log spoilage separately for 30 days minimum. Fresh typically shows 3-8% waste from spoilage, while frozen averages 1-3% from freezer burn or damaged packaging. Update these percentages quarterly for accuracy.

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Salmon kennisbank.ingredient_card_meta
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

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.

JS

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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