Combo pricing can make or break your restaurant's profitability. That tempting lunch + drink for €12.95 might sound attractive to customers, but many owners miscalculate and lose money on every combo sold. The key lies in proper cost calculation before setting any discount.
Why combo prices often go wrong
The problem's rooted in psychology: you want an attractive price, so you grab the individual prices and slap on a discount. Without calculating what it actually costs you.
⚠️ Watch out:
Many owners think: "If I make profit on both items, I'll make profit on the combo too." That's false if you're giving a discount!
Calculate your actual costs first
For every combo, you need to know what the ingredients actually cost. Add everything up: main course, side dish, drink, sauces, bread, butter.
💡 Example:
Lunch combo: soup + sandwich + coffee for €9.95
- Soup ingredients: €1.20
- Sandwich ingredients: €1.80
- Coffee + milk: €0.40
- Bread with soup: €0.25
Total ingredient costs: €3.65
The food cost formula for combos
Use the same formula as individual dishes, but for the entire combination:
Food cost % = (Total ingredient costs / Selling price excl. VAT) × 100
💡 Calculation:
Lunch combo €9.95 incl. 9% VAT
- Selling price excl. VAT: €9.95 / 1.09 = €9.13
- Ingredient costs: €3.65
- Food cost: (€3.65 / €9.13) × 100 = 40.0%
This is too high! Aim for max 35%.
Three strategies to make combos profitable
If your food cost's too high, you've got three options:
- Raise the combo price: €9.95 to €10.95 brings food cost down to 36.4%
- Adjust the composition: smaller soup portion or cheaper ingredients
- Choose different combinations: combine products with lower food cost
The psychology of combo pricing
Guests compare your combo price with the sum of individual prices. Make sure you're giving at least 10-15% discount, otherwise it doesn't feel like an advantage. From tracking this across dozens of restaurants, combos with less than 10% savings rarely drive additional orders.
💡 Example:
Individual prices:
- Soup: €4.50
- Sandwich: €6.50
- Coffee: €2.50
Total individual: €13.50
Combo for €10.95 = 19% discount (feels good!)
Combos as an upsell strategy
Use combos to get guests ordering more, not just to give discounts. An extra drink for €1.50 often has 80% margin.
⚠️ Watch out:
Never calculate with "average food cost". Every combo has its own cost price. A salad combo has different margins than a steak combo.
Digitally tracking combo cost prices
With separate Excel sheets it quickly becomes confusing. Apps automatically calculate the cost price of combinations based on your recipes.
How do you calculate profitable combo prices? (step by step)
List all ingredients of the combo
Add everything: main course, side dish, drink, sauces, garnish, bread. Don't forget any small ingredient, because they add up.
Calculate the total ingredient costs
Work out what each component costs per portion. Add everything together for the total cost price of the combination.
Determine your minimum selling price
Divide the total ingredient costs by your desired food cost percentage (e.g. 0.30 for 30%). Multiply by 1.09 for the price incl. VAT.
Check if the price makes psychological sense
Compare with the sum of individual prices. Give at least 10-15% discount, otherwise it doesn't feel like an advantage to the guest.
Test and adjust
Monitor how many combos you sell and what your actual food cost becomes. Adjust the composition or price if it doesn't work out.
✨ Pro tip
Test your combo pricing for exactly 2 weeks with a 15% discount off individual items. Track both sales volume and actual food cost daily to find your sweet spot.
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
Can I just give 10% discount on the sum of individual prices?
Only if your food cost stays below 35%. Always calculate it first, because some combinations have higher cost prices than others.
What if my combo food cost is higher than 35%?
Then you've got three options: raise the combo price, adjust the composition (smaller portions or cheaper ingredients), or choose different products for the combination.
How often should I check my combo prices?
At least every 3 months, or immediately if suppliers raise their prices. Ingredient prices change, so your food cost does too.
Can I make different combos with the same food cost?
No, every combo has its own cost price. A fish combo costs different ingredients than a meat combo, so the food cost differs too.
Should I include VAT in the calculation of combo prices?
Always calculate with prices excl. VAT for your food cost. The price on your menu is incl. VAT, but for cost calculations you use excl. VAT.
What's the ideal discount percentage for combos to feel attractive?
Aim for 15-20% off individual prices. Anything less than 10% won't motivate customers to upgrade, while more than 25% often kills your margins completely.
📚 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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