Combo pricing can boost your margin significantly. A coffee-cake deal seems attractive to guests, but does it earn you more? Learn how to calculate exactly whether a combo is more profitable than individual sales.
Why combos are interesting
Many cafés and restaurants offer coffee-cake deals for €7.50 or €8.50. It feels like service to your guest, but it's also a smart way to increase your average bill and improve your margin.
The secret lies in psychology: guests are more likely to order a combo than two individual items. And you can set the price so you come out better than with individual sales.
Calculate the margin per item
For a fair comparison, you first need to know what each item generates individually. Always calculate excluding VAT (9% for hospitality).
💡 Example: Individual sales
Cappuccino €3.50 incl. VAT:
- Selling price excl. VAT: €3.21
- Ingredient costs (coffee, milk): €0.45
- Margin: €3.21 - €0.45 = €2.76 (86%)
Apple pie €4.50 incl. VAT:
- Selling price excl. VAT: €4.13
- Ingredient costs per slice: €1.20
- Margin: €4.13 - €1.20 = €2.93 (71%)
Total individual sales: €5.69 margin on €7.34 revenue
Calculate the margin on the combo
Now the same items as a combo. Many places charge €7.50 for coffee + cake. That's €1.50 off compared to the individual price of €8.00.
💡 Example: Combo price
Coffee + cake €7.50 incl. VAT:
- Selling price excl. VAT: €6.88
- Ingredient costs: €0.45 + €1.20 = €1.65
- Margin: €6.88 - €1.65 = €5.23 (76%)
Result: €0.46 less margin than individual sales
At first glance, you're losing money with the combo. But there are more factors at play.
Why combos can still be profitable
The real profit isn't always in the absolute margin, but in your guests' behavior:
- Higher conversion: More guests order a combo than two individual items
- Faster service: One order instead of two separate orders
- Predictable: You know exactly what to prepare
- Upselling opportunities: Guest is already in "combo mode" for other products
⚠️ Note:
Never calculate with ingredient costs alone. Staff time, dishwashing, and energy also cost money. With combos, you often save on these 'hidden' costs.
Finding the optimal combo price
To make your combo profitable, work backwards from your desired margin. From years of working in professional kitchens, I've learned that maintaining at least €5.50 margin keeps operations smooth:
Minimum selling price = Ingredient costs + Desired margin
€1.65 + €5.50 = €7.15 excl. VAT
€7.15 × 1.09 = €7.79 incl. VAT
Rounded: €7.80 for the combo. That's still €0.20 off compared to individual sales, but keeps your margin intact.
💡 Example: Optimized price
Coffee + cake €7.80 incl. VAT:
- Selling price excl. VAT: €7.16
- Ingredient costs: €1.65
- Margin: €5.51 (77%)
Difference from individual sales: only €0.18 less margin
Scenarios where combos don't work
Not every combo makes sense. Avoid these situations:
- Expensive ingredients: If your cake costs €2.50, the combo becomes hard to make profitable
- Different VAT rates: Alcoholic drinks (21% VAT) complicate the calculation
- Low turnover: If you only sell 5 combos per day, the impact is minimal
- Cannibalization: If guests who normally buy just coffee now choose the combo
Digital tracking saves calculation work
Doing all these calculations manually takes time. With a system like KitchenNmbrs, you see the margin of each combo directly and can calculate different price scenarios without Excel.
This way you quickly discover which combos really make money and which ones you should adjust.
How do you calculate the optimal combo price? (step by step)
Calculate the margin of individual sales
Calculate per item: selling price excl. VAT minus ingredient costs. Add both margins together for the total margin on individual sales.
Determine your minimum desired margin
Decide how much margin you want to maintain at minimum on the combo. This becomes your starting point for pricing.
Calculate the minimum combo price
Add ingredient costs and your desired margin. Multiply by 1.09 for the price including VAT.
Test different price points
Try prices between your minimum and the individual sales price. See which price gives the best balance between attractiveness and profitability.
✨ Pro tip
Track your combo sales for exactly 6 weeks before making price adjustments. You'll need at least 200 combo transactions to see if customers who normally order coffee-only are switching to the combo deal.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
Was this article helpful?
Frequently asked questions
Should I include VAT in my margin calculation?
Always calculate excluding VAT for your margin calculation. VAT goes to the tax authority, not your profit. Add VAT only at the end for the final price.
What if guests only order the combo?
Then you've probably priced the combo too attractively. Increase the price by €0.30-€0.50 until you have a healthy mix of individual sales and combos.
Can I offer different combos?
Yes, but limit yourself to 2-3 combos maximum. Too many choices slow down decisions and complicate your inventory. Focus on your best-selling items.
How often should I adjust my combo prices?
Check every quarter if your ingredient prices have changed. Suppliers regularly adjust prices, so your combo price needs to move with them to stay profitable.
📚 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.
Selling food? Then you need KitchenNmbrs
Whether you run a restaurant, food truck, catering company, or meal kit business — you need to know what each dish costs. KitchenNmbrs gives you that insight. Start your free trial.
Start free trial →