Packaging costs can silently drain thousands from your annual profits if you don't account for them properly. Those seemingly small expenses - bags at 15 cents, napkins at 3 cents - add up to significant money over time. Most restaurant owners forget to factor these costs into their pricing strategy.
Why packaging costs slip through the cracks
You think about ingredients, labor, and rent. But that 15 cents for a bag? That 3 cents for napkins? You skip counting it. Makes sense too - it feels insignificant.
But here's the math:
💡 Example:
You serve 200 takeout orders weekly:
- Bag: €0.15 × 200 = €30
- Napkins: €0.03 × 200 = €6
- Disposable cutlery: €0.08 × 200 = €16
Weekly total: €52 | Annual cost: €2,704
That's over €2,700 yearly. Skip passing this to customers, and you're earning €2,700 less profit.
Complete packaging cost breakdown
These expenses belong in your cost of goods, not overhead:
- Bags and sacks - paper or plastic varieties
- Boxes and containers - for hot food items
- Disposable cutlery - forks, knives, spoons
- Napkins - frequently overlooked but essential
- Sauce containers - for mayo, ketchup, dressings
- Stickers and labels - sealing or allergen information
- Insulation wrap - heat retention materials
⚠️ Watch out:
Include 'complimentary' extras too. That free mayo portion costs money, even if you don't charge customers for it.
Calculating actual per-order expenses
Pull your latest packaging supplier invoice. Divide total costs by items purchased. This reveals your true per-unit pricing.
💡 Sample calculation:
Packaging invoice: €340 covering:
- 1,000 bags at €0.12 each
- 2,000 napkins at €0.025 each
- 500 cutlery sets at €0.35 each
Average order total: €0.12 + €0.05 + €0.35 = €0.52
On a €25 order, this represents 2.1% of revenue. From years of working in professional kitchens, I've seen how these seemingly minor percentages compound. If your food cost sits at 32%, you're now at 34.1% - cutting directly into margins.
Order-specific packaging calculations
Different orders require different packaging amounts. Create categories:
- Small orders (€10-15): typically 1 bag, minimal cutlery
- Family orders (€40+): multiple containers, extra cutlery
- Soups and sauces: additional containers and spoons
- Salad orders: separate dressing containers needed
💡 Real-world example:
Single Margherita vs. family order comparison:
- 1 pizza: box €0.45 + bag €0.12 = €0.57
- Family deal: 3 boxes €1.35 + bag €0.15 + napkins €0.08 = €1.58
Packaging difference: €1.01 higher for family orders
Incorporating costs into pricing strategy
Two approaches exist: separate charges or built-in pricing.
Approach 1: Separate line item
"Packaging fee: €0.50" appears on receipts. Transparent but often irritates customers.
Approach 2: Integrated menu pricing
Add packaging expenses to ingredient costs before calculating selling prices. Customers see one clean price.
⚠️ Platform consideration:
Delivery platforms (Thuisbezorgd, Uber Eats) charge commission on packaging costs too. Factor in additional 15-30% commission expenses.
Audit your current pricing structure
Select your top-selling takeout item. Calculate total packaging expenses. Divide by selling price (excluding VAT). Results above 3% indicate potential profit loss.
Assessment formula:
(Packaging expenses / Net selling price) × 100 = Packaging percentage
Exceeding 3%? Time to adjust prices or source cheaper packaging options.
How do you calculate packaging costs into your prices?
Gather all packaging invoices
Get your last 3 invoices from packaging suppliers. Add up the total amount and divide by the number of items. That gives you the real price per bag, container, or cutlery set.
Calculate costs per order type
Make a list of your most popular takeout dishes. For each dish, add up which packaging you use and what it costs. A pizza uses different packaging than a salad.
Add packaging costs to ingredient costs
Add packaging costs to your ingredient costs per dish. Then calculate your new food cost percentage. If this goes above 35%, raise your selling price.
✨ Pro tip
Track your packaging costs per order over the past 3 months to spot trends. If costs are climbing, examine waste patterns first - like excessive napkins or unnecessary extra containers - before raising menu prices.
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 charge packaging costs separately to customers?
Most customers find separate packaging fees annoying. Better to build these costs into your menu prices so customers see one clear total.
What percentage of my revenue should packaging costs represent?
For takeout and delivery operations, 2-4% of revenue is typical for packaging expenses. Above 4% becomes costly and warrants seeking cheaper supplier alternatives.
Do delivery platforms charge commission on packaging costs?
Yes, platforms like Thuisbezorgd charge commission on total order value, including packaging. Factor in an additional 15-30% commission on these costs.
How should I handle packaging costs in my bookkeeping?
Packaging costs are deductible business expenses. Keep supplier invoices and record them under 'packaging materials' in your accounting system.
What's the best way to reduce excessive packaging expenses?
Purchase larger quantities for better unit pricing and compare suppliers quarterly. Avoid unnecessary extras - every additional napkin impacts your bottom line.
How do I calculate packaging costs for menu items with multiple components?
Break down each component's packaging needs separately, then sum the total. A burger might need a box (€0.30), bag (€0.12), and napkins (€0.05) for €0.47 total packaging cost.
📚 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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