Calculate high tea margins by totaling all ingredient costs (including small items like tea and tableware), then divide by your selling price excluding VAT. Aim for 25-32% food cost, but watch for profit leaks in generous portions and expensive ingredients like real clotted cream.
You're losing money on high tea without realizing it. Most restaurant owners price these experiences like regular dishes, but you're actually selling a complete package with hidden costs that eat into profits.
What makes high tea margin different?
With a high tea, you're not selling a single dish, but a complete set with multiple components. Think sandwiches, scones, sweets, and tea. You calculate the margin over the total package, not per item.
💡 Example high tea composition:
- 3 savory sandwiches: €2.80
- 2 scones with clotted cream: €1.90
- 3 sweet bites: €3.20
- Tea and tableware: €0.60
Total ingredient costs: €8.50
Calculate your total cost price
Add up all the ingredients that go into your high tea. Don't forget the small things like butter, jam, sugar, and milk. Those costs add up quickly.
- All breads and pastries
- Meat, cheese, vegetables for savory items
- Jam, clotted cream, butter
- Tea, coffee, sugar, milk
- Garnish and decoration
⚠️ Note:
Also factor in tableware and washing costs. High tea uses more plates, cups, and cutlery than a regular dish.
Calculate your selling price excluding VAT
Your menu price includes 9% VAT. For the margin calculation, you need the price excluding VAT.
Formula: Price excl. VAT = Menu price / 1.09
💡 Example:
High tea on menu: €32.50 incl. VAT
Price excl. VAT: €32.50 / 1.09 = €29.82
Calculate your margin percentage
Now you can calculate your margin. There are two ways to express this:
Gross margin = ((Selling price - Cost price) / Selling price) × 100
Food cost = (Cost price / Selling price) × 100
💡 Example calculation:
Cost price: €8.50 | Selling price excl. VAT: €29.82
- Gross margin: ((€29.82 - €8.50) / €29.82) × 100 = 71.5%
- Food cost: (€8.50 / €29.82) × 100 = 28.5%
This is a healthy margin for high tea.
Calculate high wine margin
High wine works the same way, but with wine instead of tea. Note: wine falls under 21% VAT instead of 9%.
Price excl. VAT for wine = Menu price / 1.21
💡 Example high wine:
High wine menu: €42.00 incl. 21% VAT
- Price excl. VAT: €42.00 / 1.21 = €34.71
- Cost price bites + wine: €12.80
- Food cost: (€12.80 / €34.71) × 100 = 36.9%
This is also an acceptable percentage.
Standard margins for high tea concepts
High tea and high wine often have better margins than regular dishes, because guests are paying for the complete experience. From tracking this across dozens of restaurants, these ranges hold true consistently.
- High tea food cost: usually 25-32%
- High wine food cost: usually 30-38% (due to expensive wine)
- Gross margin: often 65-75%
⚠️ Note:
Also factor in extra staff and time. High tea requires more setup and service than regular dishes.
Where does profit leak away with high tea?
Many business owners underestimate the small costs that come with high tea:
- Overly generous portions: 4 sandwiches instead of 3
- Expensive ingredients: Real clotted cream costs €18/kg
- Waste: Scones that don't sell
- Extra tableware: More washing and breakage
- Time: Setup takes more time than you think
Keep track of these costs to know your real margin. Calculate each component separately so you know exactly what each package costs you.
How do you calculate the margin on high tea? (step by step)
Make a list of all ingredients
Write down everything that goes into your high tea: rolls, spreads, scones, jam, clotted cream, sweets, tea, milk, sugar. Don't forget garnish or decoration.
Calculate the total cost price
Add up all ingredient costs. Also factor in tableware, extra washing, and setup time. This gives you the real cost price per high tea.
Determine your selling price excluding VAT
Divide your menu price by 1.09 to get the price excl. VAT. For high wine with alcohol, divide by 1.21 due to the higher VAT rate.
Calculate your food cost percentage
Divide your cost price by your selling price excl. VAT and multiply by 100. A food cost between 25-35% is standard for high tea concepts.
✨ Pro tip
Track your clotted cream usage for 2 weeks - most restaurants use 40% more than they budget for, killing margins on what should be their most profitable offering.
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 is a good margin on high tea?
A food cost between 25-32% is standard for high tea. This means a gross margin of 68-75%, which is higher than regular dishes due to the experience value.
Should I include VAT in my margin calculation?
No, always calculate with prices excluding VAT. High tea falls under 9% VAT, high wine under 21% VAT due to the alcohol.
How do I factor in tableware and setup time?
Calculate approximately €0.50-1.00 extra per high tea for tableware, washing, and extra setup time. This varies per establishment and concept.
Why is my high tea margin lower than expected?
Often due to overly generous portions, expensive ingredients like real clotted cream, or not accounting for small costs like tea, sugar, and tableware.
Does high wine margin differ from high tea?
Yes, high wine often has a slightly higher food cost (30-38%) due to wine costs and the higher 21% VAT rate on alcohol.
Should I calculate margins differently for weekend vs weekday high tea?
The calculation method stays the same, but weekend high tea often justifies higher prices due to increased demand. Factor in any premium ingredients you use for weekend service.
📚 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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