How much should you charge for that ready-made lasagna sitting in your display case? Unlike dishes you prepare from scratch, pre-made meals come with their own cost challenges. Too many deli owners price these items wrong because they only look at the purchase price.
What are the real costs of ready-made meals?
Pre-made meals involve more than just what you pay your supplier. You've got hidden costs lurking everywhere:
- Purchase price from the supplier
- Heating (gas, electricity, time)
- Packaging (containers, stickers, bags)
- Storage (refrigeration, freezer)
- Shelf life (what you throw away)
- Labor (heating, packaging, selling)
💡 Example:
Lasagna from supplier at €4.50 per portion:
- Purchase price: €4.50
- Heating (10 min): €0.25
- Packaging: €0.35
- Waste (5%): €0.23
Total costs: €5.33
How do you calculate the right selling price?
Deli operations need margins between 60% and 75% to stay profitable. Your costs should represent just 25% to 40% of what customers pay.
Formula:
Minimum selling price excl. VAT = Total costs / (Desired cost percentage / 100)
💡 Example calculation:
Total costs lasagna: €5.33
Desired cost percentage: 35%
Minimum price excl. VAT: €5.33 / 0.35 = €15.23
Price incl. 9% VAT: €15.23 × 1.09 = €16.60
Rounding to €16.95 gives you a margin of 65%
Different margins per product type
From years of working in professional kitchens, I've learned that each product category demands its own pricing strategy:
- Hot meals: 60-70% margin (more labor)
- Cold salads: 65-75% margin (short shelf life)
- Soups: 70-80% margin (lots of packaging, heating)
- Sandwiches/wraps: 55-65% margin (quick turnover)
⚠️ Note:
Always calculate with the price excluding VAT. Many entrepreneurs make the mistake of calculating with the final price including VAT, which makes their margin look lower than it actually is.
How do you keep waste under control?
Waste kills margins faster than anything else. Ready-made meals are especially vulnerable:
- Date expiration: Bought too much for sales
- Quality loss: Stored too long, dried out
- Seasonal fluctuations: Wrong demand forecast
💡 Practical example:
If you have 10% waste on products worth €1000 per week:
- Waste per week: €100
- Waste per year: €5,200
- At 65% margin: €13,520 extra revenue needed to compensate
Digital tools for margin calculation
Manual calculations eat up time and create mistakes. Systems like KitchenNmbrs let you:
- Record all cost items per product
- Automatically calculate your selling price
- Set different margins per product category
- Track waste and see its impact
You'll instantly see which products drive profits and where margins are getting squeezed.
How do you calculate the margin on ready-made meals? (step by step)
Gather all cost items
Note the purchase price, packaging costs, heating costs and expected waste. Also include labor costs for heating and packaging.
Determine your desired margin
For delicatessens, 60-75% margin is standard. This means your costs should be 25-40% of your selling price.
Calculate your minimum selling price
Divide your total costs by the desired cost percentage. Then multiply by 1.09 for VAT to get your final price.
✨ Pro tip
Track your top 5 ready-made meal sellers for 2 weeks and calculate their true margins including all hidden costs. You'll often discover your most popular items are your least profitable.
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
What margin is normal for ready-made meals?
Delicatessens typically need margins between 60% and 75% to remain profitable. Your costs should represent no more than 25-40% of your selling price.
Should I include labor costs in the calculation?
Absolutely include labor for heating and packaging tasks. Budget around €0.20-0.40 per meal for the time you invest in preparation and service.
How do I factor waste into my cost price?
Add 5-10% to your purchase price to account for normal waste levels. If you buy €100 worth of product and waste 10%, your real costs become €110.
Does the margin differ per type of meal?
Yes, different products require different margins. Soups and salads need higher margins (70-80%) due to packaging and shorter shelf life, while sandwiches can work with 55-65%.
Can I charge the same margin as restaurants?
No, restaurants typically work with 28-35% food cost ratios. You have lower overhead but pay more for pre-made products, making 60-75% margins more realistic for delis.
How often should I review my ready-made meal pricing?
Review prices monthly, especially for seasonal items. Monitor supplier price changes and adjust your margins quarterly to maintain profitability.
What's the biggest pricing mistake deli owners make with ready-made meals?
Most owners only consider the supplier's invoice price and forget about heating, packaging, storage, and waste costs. This can undercut your actual margin by 15-20%.
📚 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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