Homemade pastries often cost more than you think. Many hospitality entrepreneurs forget to include labor costs and overhead, causing them to lose money on homemade pastries. Here's how to calculate the real cost price and decide if buying makes more sense.
Why homemade can be more expensive than expected
Homemade pastries aren't just about ingredients. You're also paying for your pastry chef's time, oven energy costs, and all the equipment needed.
💡 Example: Making cheesecake yourself vs. buying it
Homemade cheesecake (12 slices):
- Ingredients: €8.50
- Labor (2 hours at €18/hour): €36.00
- Energy and overhead: €3.50
Total: €48.00 = €4.00 per slice
Bought from supplier: €2.80 per slice
All cost items for homemade pastries
For a fair comparison, you need to add up these costs:
- Ingredient costs: Everything that goes in (flour, eggs, butter, sugar, fillings)
- Labor costs: Time of your pastry chef × hourly wage (including employer contributions)
- Energy costs: Oven, mixer, cooling during preparation
- Overhead: Equipment depreciation, cleaning, packaging
- Waste: Failed batches, leftovers that don't sell
⚠️ Watch out:
Many entrepreneurs forget to include labor costs. "My pastry chef makes it anyway" isn't free labor. That time costs money.
Calculate labor costs correctly
Labor costs are often the largest cost item for homemade pastries. Don't just count the gross wage - include employer contributions too.
💡 Example: Calculating labor costs
Pastry chef earns €15/hour gross
- Employer contributions (approx. 20%): €3.00
- Total labor costs: €18.00/hour
For 2 hours of pastry work: €36.00
Making it yourself pays off in these situations
Homemade can be profitable if you have:
- High selling price: If guests pay €8+ for a slice of cake
- Unique recipe: Something you can't buy
- Large volumes: With 50+ portions per day, fixed costs are spread out
- Existing capacity: Your pastry chef has spare time anyway
Most kitchen managers discover too late that their "profitable" homemade desserts were actually losing money once they factor in the true labor costs.
The break-even calculation
Calculate from which selling price homemade becomes profitable:
Minimum selling price = (Total costs / Number of portions) / Desired food cost %
💡 Example: Break-even calculation
Homemade apple pie (10 slices):
- Total costs: €35.00
- Cost per slice: €3.50
- Desired food cost: 30%
Minimum selling price: €3.50 / 0.30 = €11.67 excl. VAT
Incl. 9% VAT: €12.72 per slice
Bought pastries: the hidden costs
Buying seems cheaper, but also has extra costs:
- Delivery costs: Transport, minimum order quantities
- Storage costs: Freezer space, shelf life
- Waste: Damaged products, expired items
- Lower margin: Standard product, harder to differentiate
⚠️ Watch out:
Calculate the real food cost for bought pastries too. Including waste and delivery costs, this is often 10-15% higher than the catalog price.
Making the practical decision
Base your choice on these factors:
- Volume: From 30+ portions per day, making it yourself becomes more interesting
- Kitchen capacity: Do you have time and space for pastry work?
- Quality difference: Can guests taste the difference?
- Price on menu: Can you charge €10+ per portion?
Food cost calculators can help you put both cost prices side by side and immediately see which option yields the most for your situation.
How do you calculate the cost price of homemade pastries?
Gather all ingredient costs
Make a list of all ingredients with exact quantities and prices. Don't forget anything: from flour to decoration. Add everything up for the total ingredient costs per batch.
Calculate labor costs
Measure how much time it takes to make (from start to finish). Multiply by the hourly wage including employer contributions (gross wage + 20%). This is often the largest cost item.
Add energy and overhead
Calculate €1-2 per hour of oven use for energy. Add 10-15% of ingredients + labor for overhead (equipment, cleaning, waste). This gives you total cost price per batch.
Compare with bought alternatives
Divide total costs by number of portions for cost price per piece. Compare with purchase price of comparable pastries (including delivery and storage costs). Choose the option with the best margin.
✨ Pro tip
Track your actual pastry production costs for 2 weeks, including every minute of prep time and ingredient waste. You'll often discover hidden time drains that make homemade 30% more expensive than your initial calculations.
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
Do I need to include labor costs if my chef makes the pastries?
Yes, always. That time of your chef costs money, even if there's no separate payslip for pastries. Calculate with the hourly wage including employer contributions.
How do I calculate energy costs for the oven?
Calculate approximately €1-2 per hour of oven use. For a precise calculation: oven power (kW) × usage time × energy rate. Most ovens consume 3-5 kW per hour.
At what volume does making pastries yourself become profitable?
Usually from 30+ portions per day and if you can charge at least €10+ per portion. With smaller volumes, labor costs are often too high to be profitable.
How do I account for waste and failed batches?
Add 5-10% to your total costs for waste. If you regularly have to throw away batches, add 15-20%. This prevents you from losing money on failures.
📚 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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