Calculate tasting menu margins by adding all course ingredient costs, dividing menu price by 1.09 for VAT-exclusive pricing, then subtract costs from price. Target 55-75% gross margin depending on dining level, and budget 10-20% extra for higher labor and operational costs.
Most chefs think tasting menus are automatically profitable because of the premium pricing - but that's a costly mistake. Multiple courses with different cost structures and smaller portions create a complex calculation that can easily eat into your profits if you're not tracking it properly.
Why is a tasting menu different?
With a regular dish you calculate the margin per plate. With a tasting menu you're dealing with:
- Multiple courses with different cost prices
- Smaller portions (often 30-50% of normal portion)
- Extra garnishes and decoration
- More preparation time and thus higher labor costs
You calculate the total margin over the complete menu, not per course.
💡 Example:
5-course tasting menu for €65.00 incl. VAT:
- Course 1 (amuse): €1.20 ingredients
- Course 2 (appetizer): €3.50 ingredients
- Course 3 (fish): €8.00 ingredients
- Course 4 (meat): €9.50 ingredients
- Course 5 (dessert): €2.80 ingredients
Total ingredient costs: €25.00
Step 1: Calculate total ingredient costs
Add up all ingredient costs from all courses. Don't forget:
- Bread and butter
- Olive oil and vinegar
- Salt, pepper, spices
- Garnishes and decoration
- Amuses and petit fours
⚠️ Note:
Include small things too like a sprig of parsley or a drop of truffle oil. With a tasting menu, every detail counts toward the overall experience.
Step 2: Calculate the selling price excluding VAT
The price on your menu includes 9% VAT. For margin calculation you always work excluding VAT.
Formula: Price excl. VAT = Price incl. VAT / 1.09
💡 Example:
Tasting menu €65.00 incl. VAT:
€65.00 / 1.09 = €59.63 excl. VAT
Step 3: Calculate the gross margin
The gross margin is what's left after deducting ingredient costs.
Formula: Gross margin = Selling price excl. VAT - Ingredient costs
Margin percentage = (Gross margin / Selling price excl. VAT) × 100
💡 Example:
Selling price excl. VAT: €59.63
Ingredient costs: €25.00
Gross margin: €59.63 - €25.00 = €34.63
Margin percentage: (€34.63 / €59.63) × 100 = 58.1%
Accounting for extra costs
A tasting menu often brings extra costs with it:
- More preparation time: Complex dishes take more time
- Higher labor costs: Chef spends more attention per guest
- More dishwashing: Multiple plates and cutlery per guest
- Presentation: Special plates and decoration
From analyzing actual purchasing data across different restaurant types, I've found that budgeting 10-20% extra operational costs for tasting menus is realistic.
⚠️ Note:
A tasting menu seems more profitable because the margin is higher, but don't forget the extra time and attention it requires. Factor this into your planning.
Benchmarks for tasting menus
Standard margins for tasting menus are higher than for regular dishes:
- Casual dining tasting: 55-65% gross margin
- Fine dining tasting: 60-70% gross margin
- Chef's table experience: 65-75% gross margin
The higher margin compensates for the extra time and attention per guest.
When is a tasting menu profitable?
A tasting menu is profitable when:
- Your gross margin is above 55%
- You can justify the extra preparation time
- Guests are willing to pay the premium price
- Your team can handle the complexity without stress
💡 Complete tasting calculation example:
5-course menu, 20 guests per evening:
- Revenue: 20 × €59.63 = €1,192.60
- Ingredients: 20 × €25.00 = €500.00
- Extra labor costs: €150.00
- Other costs: €100.00
Net profit: €442.60 (37% of revenue)
How do you calculate the margin on a tasting menu?
Add up all ingredient costs
Calculate the cost price of each course separately and add them together. Don't forget small things like bread, butter, oil and garnishes.
Calculate the selling price excluding VAT
Divide your menu price by 1.09 to get the price excluding VAT. This is your actual selling price for the margin calculation.
Subtract ingredient costs from selling price
The difference is your gross margin. Divide this by the selling price excl. VAT and multiply by 100 for the margin percentage.
Account for extra operational costs
Add 10-20% extra costs for the extra preparation time, labor costs and complexity of a tasting menu.
Check if the margin is above 55%
A tasting menu must deliver at least 55% gross margin to justify the extra time and attention.
✨ Pro tip
Track your portion weights for each course weekly - tasting portions tend to grow over time as chefs get generous, which can drop your margin by 8-12% without you realizing it.
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Frequently asked questions
Should I include wine in the margin calculation?
Only if you offer a wine-pairing combination for a fixed price. Then calculate the wine costs separately and add them to the ingredient costs.
Why is the margin on a tasting menu higher?
You charge a premium for the culinary experience and extra attention. Plus, this compensates you for the extra preparation time and complexity.
How often should I update my tasting menu prices?
Check at least every 3 months whether your ingredient costs are still accurate. Seasonal products can vary significantly in price.
Can I use different margins per course?
You can calculate per course, but the total margin of the complete menu is what counts. Some courses can be more expensive if others are cheaper.
📚 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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