Food cost in a lunch business typically runs between 25% and 32%, which beats most full restaurants since lunch dishes tend to be simpler. But most lunch operators just guess at these numbers, and that's exactly how hundreds of euros slip through the cracks every month.
Normal food cost percentages for lunch businesses
Lunch spots usually beat restaurants on food costs because the dishes aren't as complex. Here's what you should expect:
- Sandwiches and wraps: 20-28%
- Salads: 25-32%
- Soups: 15-25%
- Hot lunch dishes: 28-35%
- Pastas: 18-28%
- Quiches and savory pies: 25-32%
? Example:
A club sandwich for €12.50 incl. 9% VAT:
- Sales price excl. VAT: €11.47
- Ingredients: €3.20
- Food cost: (€3.20 / €11.47) × 100 = 27.9%
That lands perfectly within the 20-28% range for sandwiches.
Why lunch businesses beat dinner on food costs
Lunch has several built-in advantages over dinner service:
- Simpler dishes: Fewer ingredients, less prep time
- Less meat: Meat's usually your most expensive ingredient
- More bread and vegetables: Cheap base ingredients that fill people up
- Standard portions: Much easier to control than à la carte
- Less garnish: Simpler presentation saves money
? Example comparison:
Lunch: Caesar salad for €9.50
- Lettuce, croutons, dressing, cheese: €2.40
- Food cost: 28%
Dinner: Steak for €28.00
- Meat, vegetables, sauce, sides: €8.50
- Food cost: 33%
How to calculate your actual food cost
For each lunch item, you'll need this formula:
Food cost % = (Ingredient costs / Sales price excl. VAT) × 100
⚠️ Note:
Always calculate with the price EXCLUDING VAT. Your menu price includes 9% VAT for food.
Make sure you include in ingredient costs:
- Bread, sauces, garnish
- Oil and butter for cooking
- Spices and seasonings
- Everything that touches the plate
? Example calculation:
Ham and cheese toastie for €6.50 incl. VAT:
- Sales price excl. VAT: €6.50 / 1.09 = €5.96
- Bread: €0.40
- Ham: €0.80
- Cheese: €0.60
- Butter: €0.15
- Total ingredients: €1.95
Food cost: (€1.95 / €5.96) × 100 = 32.7%
What to do if your food cost is too high
If you're hitting above 35%, you're bleeding money. Here's how to stop it:
- Control portions: Are you giving too much? Measure everything
- Raise prices: Small bumps often go unnoticed
- Find cheaper alternatives: Different supplier or substitute ingredient
- Adjust your menu: Push the profitable items harder
⚠️ Note:
Check purchase prices regularly. Suppliers bump prices all the time, but you forget to update your menu pricing.
How food cost hits your bottom line
Every percentage point of food cost directly steals from your profit. Based on real restaurant P&L data, a lunch business with €200,000 annual revenue shows:
- 30% food cost: €60,000 on ingredients
- 35% food cost: €70,000 on ingredients
- Difference: €10,000 per year less profit
That's almost €200 per week disappearing without you even noticing.
Digital help with cost price calculation
Most lunch businesses still rely on Excel or just guess at costs. That eats time and creates errors. Tools like KitchenNmbrs automatically calculate your food cost per dish, so you can spot which items actually make money.
You can quickly adjust if suppliers raise their prices, without doing the math yourself.
Related articles
How to calculate food cost for your lunch business? (step by step)
Gather all ingredient prices
Make a list of all ingredients per dish, including bread, sauces and garnish. Note the purchase price per kilo or per unit from your supplier.
Calculate the amount per portion
Weigh or measure how much you use per portion. A slice of ham of 25 grams, a spoonful of mayonnaise of 15 grams, etc. Be precise, small differences add up.
Calculate the costs per portion
Multiply amount × price per gram/unit for each ingredient. Add up all ingredient costs for the total cost price of the dish.
Calculate the food cost percentage
Divide ingredient costs by sales price excl. VAT and multiply by 100. For a dish of €8.50 incl. VAT: €8.50 / 1.09 = €7.80 excl. VAT.
Compare with normal percentages
Check if your food cost falls within the normal range: 20-28% for sandwiches, 25-32% for salads. Above 35% usually means a loss on that dish.
✨ Pro tip
Track your food cost weekly on your top 3 lunch items for 30 days. If those stay under 30%, you've locked down 70% of your profit leaks right there.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
Calculate it yourself?
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Frequently asked questions
Do I need to include VAT in my food cost calculation?
What is a dangerously high food cost for lunch?
How often should I check my food cost?
Why do soups have such low food cost?
Should I include waste in my food cost?
Can I estimate food cost without calculating?
What if my lunch portions vary between staff members?
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
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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