Hotels with F&B have a complex cost structure where room costs and restaurant costs intertwine. Many hoteliers struggle with the question of how to calculate their restaurant and room service prices when guests also stay overnight. In this article you'll learn how to set up a clear cost pricing model that fairly divides both parts.
Why hotels need a different cost pricing model
A hotel is not a regular restaurant. You're dealing with guests who stay overnight and eat, external restaurant guests, room service, breakfast included in room rates, and shared costs like staff who do both F&B and reception work.
⚠️ Watch out:
Many hotels price their restaurant too low because they think staying guests "are paying anyway". This leads to unprofitable F&B operations.
The three cost categories for hotel F&B
Divide your costs into three clear categories:
- Pure F&B costs: Ingredients, kitchen staff, F&B manager
- Shared costs: Reception, housekeeping, building costs, general manager
- Room costs: Housekeeping, linens, room maintenance
For your F&B cost price you only calculate with the first two categories. Room costs belong with your accommodation price.
Step-by-step cost price calculation
Start with your pure ingredient costs per dish. This works the same as in a restaurant:
💡 Example: Hotel steak
Ingredients for a steak in your hotel restaurant:
- Steak 200g: €6.40
- Vegetables and garnish: €1.80
- Sauce and butter: €0.90
Pure food cost: €9.10
Now add your shared costs. Calculate what percentage of your total shared costs goes to F&B. With a hotel that has 60% room revenue and 40% F&B revenue, you allocate 40% of shared costs to F&B.
Different prices for different situations
Make a distinction between:
- À la carte restaurant: Full cost price + margin (like a normal restaurant)
- Room service: À la carte price + surcharge (15-25%) for service and logistics
- Breakfast included in room rate: Breakfast cost price worked into room price
- Half board: Dinner cost price worked into total package
💡 Example: Charging through breakfast
Your breakfast costs €4.50 per person (ingredients + shared costs). With a room rate of €120 you can handle this as follows:
- Room without breakfast: €110
- Breakfast: €15 (€4.50 costs + margin)
- Or: Room rate stays €120, breakfast "included"
Both work, as long as you know what your breakfast costs.
Food cost percentages for hotels
Hotels often have slightly higher food cost percentages than restaurants because:
- Breakfast has high food cost (bread, spreads, fruit)
- Room service has extra logistical costs
- Smaller volumes than specialized restaurants
Typical food cost for hotel F&B: 32-40% (restaurants: 28-35%)
Separate administration for F&B and rooms
Keep your F&B revenue and costs separate from your room revenue. This gives you insight into:
- Which part of your hotel is most profitable
- Whether your F&B operation is independently profitable
- Where you need to make adjustments if results fall short
⚠️ Watch out:
Many hotels discover their restaurant is unprofitable when they fairly allocate costs. This is valuable insight to work with.
KitchenNmbrs for hotel F&B
An app like KitchenNmbrs can help you track your F&B costs, separate from your room bookings. You can create recipes for breakfast, lunch, dinner and room service, and see what each part actually costs.
Note: KitchenNmbrs is designed for restaurants and small hotels (up to 3-4 stars). For large hotel chains there are specialized hotel management systems available.
How do you set up a cost pricing model? (step by step)
Separate your costs into three categories
Make lists of pure F&B costs, shared costs, and room costs. Allocate shared costs according to your revenue ratio (for example 40% to F&B at 40% F&B revenue).
Calculate cost price per F&B component
Calculate ingredient costs + your share of shared costs for breakfast, lunch, dinner and room service separately. Use these as the basis for your pricing.
Set different prices per situation
Make a distinction between à la carte (full margin), room service (with surcharge), and meals in packages (cost price worked into total price).
✨ Pro tip
Calculate monthly whether your F&B operation is independently profitable. Many hotels unknowingly subsidize their unprofitable restaurant with room revenue.
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 lower my restaurant prices for hotel guests?
No, your à la carte prices stay the same. Hotel guests pay the same price as external guests. You can offer discounts through packages or deals, but then factor the costs into your room price.
How do I charge through breakfast if it's "free" with the room?
Calculate the cost price of your breakfast and work it into your room price. A breakfast costing €4.50 can be charged through for €12-15 in your total room price.
What's a realistic food cost for a hotel restaurant?
Hotels often have 32-40% food cost, slightly higher than regular restaurants. This is due to breakfast (high food cost), smaller volumes and room service logistics.
Should I make room service more expensive than the restaurant?
Yes, room service costs extra logistics, staff and materials. A surcharge of 15-25% on your restaurant price is standard for room service.
Can I use KitchenNmbrs for my hotel restaurant?
KitchenNmbrs works well for small to mid-size hotels (1-4 stars) with their own F&B. For large hotel chains there are specialized hotel management systems available.
📚 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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