Picture this: a corporate client calls wanting 10 sandwiches for €30, and you eagerly accept what feels like easy money. But after factoring in prep time, delivery costs, and your actual profit margin, you've essentially worked for minimum wage. Setting realistic minimum prices protects your bottom line and ensures every order actually generates profit.
Why a minimum price is crucial
Most sandwich shops grab every order that comes their way, even those 10 sandwiches for €30. Sure, it feels like easy revenue. But factor in your time, ingredients, and delivery expenses? You're often earning less than minimum wage.
⚠️ Note:
An order of 10 sandwiches eats up at least 45 minutes: 15 for prep, 10 for packing, 20 for delivery. At €3 per sandwich, you're looking at €30 minus costs = often less than €10 per hour.
The hidden costs of small orders
Every single order carries fixed costs, no matter how small:
- Taking and processing the order: 5-10 minutes
- Delivery (round trip): 15-30 minutes
- Administration and payment: 5 minutes
- Packaging and labels: €0.50-1.00 per order
With tiny orders, these costs can't be recovered by your sandwich margins. It's something most kitchen managers discover too late - they've been subsidizing small orders with profits from larger ones.
💡 Example small order:
Order: 8 sandwiches at €3.50 = €28.00
- Ingredients (40% food cost): €11.20
- Labor (45 min at €15/hour): €11.25
- Packaging and fuel: €2.00
Profit: €28.00 - €24.45 = €3.55 (12.7%)
Calculate your break-even point
Your break-even marks where costs and revenue meet. Drop below that line? You're losing money.
Formula for break-even on corporate orders:
Break-even = (Fixed costs per order + Variable costs) / (1 - Food cost %)
💡 Example break-even calculation:
Fixed costs per order:
- Labor (order + delivery): 40 min at €15/hour = €10.00
- Packaging and fuel: €2.50
- Total fixed: €12.50
At 35% food cost:
Break-even = €12.50 / (1 - 0.35) = €19.23
Any order under €19.23 costs you money.
Determine your desired profit margin
Break-even won't cut it. You need actual profit. Standard profit margins for corporate orders sit between 15-25%.
Formula for minimum price with profit:
Minimum price = Break-even / (1 - Desired profit margin %)
💡 Example with 20% profit margin:
Break-even: €19.23
Desired profit margin: 20%
Minimum price = €19.23 / (1 - 0.20) = €24.04
Round up to €25.00 minimum per order.
Practical minimum rules
Successful sandwich shops typically use these minimum thresholds:
- Pickup: Minimum €15-20 per order
- Delivery within 5 km: Minimum €25-35
- Delivery beyond 5 km: Minimum €40-50
- Large offices (50+ sandwiches): Lower minimums work due to economies of scale
⚠️ Note:
State your minimum clearly on your website and during phone orders. Customers who won't accept this usually cost more than they're worth.
Alternatives for small orders
Rather than refusing small orders outright, consider these options:
- Pickup service: Eliminate delivery costs, enabling lower minimums
- Fixed delivery times: Bundle multiple orders in one trip
- Surcharge for small orders: €5 surcharge below minimum amount
- Lunch subscriptions: Regular customers mean predictable revenue
Tools like food cost calculators help you track actual costs per order, so you can see which minimums truly protect profitability.
How do you calculate your minimum price? (step by step)
Calculate your fixed costs per order
Add up: labor time (taking order + preparing + delivering) × hourly wage, plus packaging costs and fuel. These are costs you always have, regardless of order size.
Determine your break-even point
Divide your fixed costs by (1 - food cost percentage). At 35% food cost and €12.50 fixed costs: €12.50 / 0.65 = €19.23 break-even. Below this amount, you lose money.
Add your desired profit margin
Divide your break-even by (1 - desired profit margin). For 20% profit: €19.23 / 0.80 = €24.04. Round up to a practical amount like €25.00 minimum per order.
✨ Pro tip
Track your last 30 corporate orders over the past 6 weeks: calculate profit per order and hourly earnings. You'll discover that orders under €25 often generate less than €8 per hour after all expenses.
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 if customers think my minimum is too high?
Explain that you deliver quality and charge fair prices. Customers who only care about price usually aren't your most profitable clients. Focus on businesses that recognize value.
Should I include VAT in my minimum calculation?
Always calculate excluding VAT. Sandwiches carry 9% VAT. Your minimum price of €25 excl. VAT becomes €27.25 incl. VAT on the invoice.
Can I use different minimums depending on distance?
Absolutely, that makes perfect sense. Nearby deliveries can have lower minimums due to reduced delivery costs, while distant orders need higher minimums to compensate for extra travel time.
How often should I adjust my minimum?
Review your actual costs quarterly. If wages, fuel, or ingredients increase, your minimum should rise too. Many operators skip this step and miss out on necessary profit adjustments.
What if a regular customer wants to order below the minimum?
Negotiate agreements based on monthly volume. A customer ordering three times weekly can occasionally go below minimum, provided the total relationship remains profitable.
Should I charge extra for rush orders under my minimum?
Yes, rush orders under your minimum should carry a premium of €3-5. The urgency disrupts your workflow and often requires immediate delivery, increasing your labor costs significantly.
📚 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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