Include packaging waste costs in my

Quick answer

Hidden packaging costs are like termites in your restaurant's foundation. They quietly devour profits while you focus on ingredient costs and labor. Most restaurant owners underestimate these expenses by 3-8% of their total revenue.

Hidden packaging costs are like termites in your restaurant's foundation. They quietly devour profits while you focus on ingredient costs and labor. Most restaurant owners underestimate these expenses by 3-8% of their total revenue.

Why include waste and packaging costs?

Every discarded package, container, and napkin chips away at your bottom line. Skip factoring these into your pricing, and you're earning less on each dish than you realize. Delivery restaurants typically see packaging costs consume 3-8% of revenue - that's real money walking out your door.

? Example:

A pasta for delivery with all packaging:

Pasta ingredients: €4.20
Aluminum container: €0.35
Lid: €0.15
Paper bag: €0.25
Napkins and cutlery: €0.15
Logo sticker: €0.05

Total cost price: €5.15 (not €4.20!)

Different types of waste and packaging costs

Your packaging expenses stretch far beyond the container holding the food:

Primary packaging: containers, cups, bags where food goes directly
Secondary packaging: bags, boxes for transport
Disposable tableware: plastic cutlery, napkins, straws
Branding materials: stickers, labels, menu cards
Protective materials: foil, insulation material for hot dishes

Calculation per dish vs. percentage of revenue

You've got two approaches for factoring packaging costs:

Method 1: Exact per dish
Add up all packaging costs per portion and bundle them with ingredient costs.

? Example method 1:

Burger menu with fries:

Burger and fries ingredients: €6.80
Burger box: €0.45
Fries container: €0.25
Mayonnaise cup: €0.15
Napkin: €0.05
Bag: €0.30

Total cost price: €8.00

Method 2: Percentage markup
Calculate average packaging costs as a percentage and apply this across all dishes.

⚠️ Note:

Method 1 delivers superior accuracy. A salad needs different packaging than a pizza. Calculate exactly per dish whenever possible.

Factoring in waste costs

Beyond packaging, waste costs demand attention too. From analyzing actual purchasing data across different restaurant types, these expenses often surprise owners with their impact:

Waste disposal: costs for collecting food waste and organic waste
Cleaning costs: extra soap, cloths due to more packaging waste
Labor costs: time spent sorting and disposing of waste

These costs resist per-dish calculation. Factor them as a percentage of total revenue (typically 0.5-1.5%).

Impact on your food cost calculation

Including packaging and waste costs bumps up your total cost price. Your food cost percentage appears higher, but you'll finally see your actual margin clearly.

? Example impact:

Pasta sale €16.50 (excl. 9% VAT = €15.14):

Without packaging: €4.20 / €15.14 = 27.7% food cost
With packaging: €5.15 / €15.14 = 34.0% food cost

Difference: 6.3 percentage points higher food cost

Practical tips for administration

Track packaging costs through your recipe system:

Create each packaging item as an 'ingredient' with a price
Add these to each recipe just like you do with ingredients
Update prices when your supplier raises them
Check monthly whether your estimate matches actual purchases

Most modern restaurant management systems handle packaging materials as ingredients, automatically showing total cost price per dish including all packaging.

How do you calculate packaging costs per dish?

Inventory all packaging materials

Lay out all packaging materials you use on a table: containers, lids, bags, cutlery, napkins, stickers. Note the purchase price per unit for each item.

Determine which packaging goes with which dish

Create a list for each dish of all packaging that goes with it. A pasta has different packaging than a pizza or salad. Add up the costs per portion.

Add packaging costs to ingredient costs

Add the total packaging costs to your ingredient costs. This gives you the actual cost price per dish. Calculate your new food cost percentage with this.

✨ Pro tip

Document every packaging component for your top 12 dishes during a full weekend service to catch the 2-4% profit drain from overlooked items like sauce cups and heat-seal bags. Most operators miss these micro-costs that add up fast.

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

Should I calculate packaging costs differently for seasonal menu items?

Yes, seasonal dishes often require specialized packaging that costs more. Calculate these separately rather than using your standard percentage. Summer salads might need insulated containers, while winter soups require leak-proof lids that cost 40% more than regular ones.

How often should I update packaging prices?

Check every 3 months to see if your packaging prices stay accurate. Suppliers regularly raise prices, especially for cardboard and plastic materials that fluctuate with raw material costs.

Can I pass packaging costs on to customers?

Packaging costs are part of your cost price and get factored into your selling price. You can't charge extra packaging costs unless you communicate this very clearly to customers.

What if I use different packaging for the same dish?

Calculate an average based on usage patterns. If you use 60% aluminum containers (€0.35) and 40% cardboard containers (€0.25), your average becomes: (0.6 × €0.35) + (0.4 × €0.25) = €0.31 per container.

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

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

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.

8 years kitchen manager at 1NUL8 Group Rotterdam

Expertise: food cost management HACCP kitchen management restaurant operations food safety compliance

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