Packaging costs money, but it can also strengthen your brand. Many entrepreneurs forget to include these costs in their pricing, causing their margins to slip away unnoticed. In this article, you'll learn how to correctly pass on packaging costs and how to view branded packaging as an investment.
Packaging costs are more than you think
A simple plastic container seems cheap, but add up all the components: container, lid, stickers, bags, napkins, cutlery. For one delivery order you'll quickly reach €0.80 to €1.50 in packaging costs.
💡 Example: Pasta delivery order
Packaging costs per order:
- Aluminum container: €0.35
- Cardboard lid: €0.15
- Plastic bag: €0.08
- Napkin + cutlery: €0.12
- Logo sticker: €0.05
Total: €0.75 per order
At 100 orders per week, this means €3,900 per year on packaging alone. You need to recoup this through your menu prices.
Calculate your packaging costs per dish
Treat packaging costs as part of your cost price, just like ingredients. The formula becomes:
Total cost price = Ingredient costs + Packaging costs
Then calculate your food cost percentage:
Food cost % = (Ingredient costs + Packaging costs) / Selling price excl. VAT × 100
💡 Example: Salad delivery
Menu price: €16.50 incl. 9% VAT (= €15.14 excl. VAT)
- Ingredient costs: €4.20
- Packaging costs: €0.90
- Total cost price: €5.10
Food cost: (€5.10 / €15.14) × 100 = 33.7%
Without packaging costs your food cost would seem to be 27.7%. With packaging it rises to 33.7% - a difference of 6 percentage points.
Branded packaging as a marketing investment
Packaging with your logo and brand identity costs more, but also has benefits:
- Brand recognition: Your packaging becomes a walking advertisement
- Professionalism: Customers take you more seriously than with neutral containers
- Word of mouth: People are more likely to share photos of beautifully packaged dishes
- Customer loyalty: Branded experience increases the chance of repeat orders
⚠️ Note:
Branded packaging often costs 20-50% more than neutral packaging. Factor this difference into your cost price, or your margin will evaporate unnoticed.
Three strategies for branded packaging
Strategy 1: Selective branding
Brand only your signature dishes or premium items. This keeps extra costs limited while still creating brand recognition.
Strategy 2: Pass through in menu price
Increase your menu price by the extra packaging costs. Branded packaging often justifies a slightly higher price because it conveys more value.
Strategy 3: Minimum order value
Use branded packaging only for orders above a certain amount. This way you finance the extra costs through higher order values.
💡 Example: ROI calculation
Branded packaging costs €0.25 extra per order. If this leads to 10% more repeat orders:
- Extra costs: €0.25 per order
- Average order value: €22.50
- Margin per order: €6.75 (30%)
- 10% more repeat orders = €0.675 extra margin per original order
ROI: €0.675 / €0.25 = 270% return
Practical tips for packaging cost management
Negotiate on volumes. From 5,000 units you often get 15-25% discount on branded packaging. Calculate whether this investment pays off.
Test different packaging for both cost and quality. Cheap packaging that leaks costs you more in the long run through complaints and negative reviews.
Watch the seasons. Many packaging suppliers have peak periods (Christmas, summer) when prices rise. Plan your purchases around this.
Measure the impact of branded packaging. Track your repeat order percentage and reviews before and after switching to branded packaging. This way you know if the investment pays off.
How do you calculate packaging costs in your pricing strategy?
Inventory all packaging components
Make a list of everything that goes into a delivery order: containers, lids, bags, cutlery, napkins, stickers. Add up the costs per component for one complete order.
Calculate cost price including packaging
Add packaging costs to your ingredient costs. This becomes your new total cost price per dish. Use this for your food cost calculation.
Determine your branded packaging strategy
Choose between selective branding, passing through in price, or linking to minimum order value. Test the impact on repeat orders and adjust your strategy.
✨ Pro tip
Use different packaging for different price points. Premium dishes deserve branded packaging, basic dishes can use neutral packaging.
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
How much extra can I charge for branded packaging?
Branded packaging usually justifies 3-8% higher menu prices. Customers expect more quality and service with branded presentation.
Should I include packaging costs in my food cost?
Yes, treat packaging costs as part of your cost price. Otherwise your margin will appear higher than it actually is.
When does branded packaging pay off?
If branded packaging leads to 8-10% more repeat orders, the extra investment usually pays for itself within 3-6 months.
Can I deduct packaging costs from VAT?
Packaging is a business expense and therefore deductible. Keep invoices and calculate VAT correctly in your administration.
How do I prevent packaging costs from getting out of hand?
Monitor your packaging costs as a percentage of revenue. Stay under 3-5% for delivery and under 2% for takeaway.
📚 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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