Breakfast equipment can significantly boost your revenue, but it costs money too. An €800 toaster or a €1,200 waffle maker needs to pay for itself. You need to know exactly how many months until your investment becomes profitable.
What is payback period?
Payback period is the time it takes to recover your investment through the extra profit it generates. Simple question: how many months until your equipment breaks even?
💡 Example:
You buy a waffle maker for €1,200. By serving waffles you earn an extra €400 per month. Payback period: €1,200 ÷ €400 = 3 months.
Calculate your extra revenue per month
First, estimate how much extra revenue the equipment will generate. Add up these factors:
- Number of extra breakfast guests per day
- Average bill per breakfast guest
- Number of days per week you serve breakfast
- Upselling to existing guests (coffee + croissant becomes coffee + omelet)
💡 Example calculation:
- 10 extra breakfast guests per day
- Average bill: €12.50
- 6 days per week open for breakfast
- Per month: 10 × €12.50 × 6 × 4.3 = €3,225
Extra revenue per month: €3,225
Deduct your extra costs
Extra revenue isn't the same as extra profit. You also have extra costs:
- Food cost: Ingredients for breakfast dishes (typically 28-35%)
- Extra staff: Breakfast cook or extra hours for existing staff
- Energy: More gas/electricity for equipment
- Cleaning: Extra time for equipment maintenance
💡 Cost example:
- Food cost (30%): €3,225 × 0.30 = €968
- Extra staff: €800 per month
- Energy: €80 per month
- Total extra costs: €1,848
Net extra profit: €3,225 - €1,848 = €1,377
Calculate the payback period
Now you can calculate the payback period using this formula:
Payback period (months) = Total investment ÷ Net extra profit per month
💡 Complete calculation:
- Investment: €2,400 (waffle maker + toaster + pans)
- Extra profit per month: €1,377
- Payback period: €2,400 ÷ €1,377 = 1.7 months
After 2 months you've recovered your investment
⚠️ Note:
Calculate conservatively. Many entrepreneurs overestimate extra revenue. Start with 70% of your expectation to avoid disappointments.
What is a good payback period?
Rule of thumb for hospitality investments:
- Excellent: Under 6 months
- Good: 6-12 months
- Acceptable: 12-24 months
- Questionable: Over 24 months
Based on real restaurant P&L data, breakfast equipment often has a short payback period because breakfast has high margins and requires little staff.
Additional factors to consider
Beyond the financial calculation, there are other benefits:
- Customer retention: Guests visit more often if you serve breakfast
- Competitive advantage: Not every establishment serves breakfast
- Better occupancy: Generate revenue in the morning too
- Higher daily revenue: Some guests stay for lunch
⚠️ Note:
Check your license. Some hospitality licenses don't cover breakfast service. HACCP procedures also need to be adjusted for fresh eggs and dairy products.
How do you calculate payback period? (step by step)
Calculate extra revenue per month
Estimate how many extra guests you expect and what their average bill will be. Calculate: number of guests × average bill × days per week × 4.3 weeks per month.
Deduct all extra costs
Calculate food cost (30% of revenue), extra staff, energy and maintenance. Subtract this from your extra revenue to get your net extra profit.
Divide investment by monthly profit
Use the formula: Total investment ÷ Net extra profit per month = Payback period in months. Under 12 months is usually a good investment.
✨ Pro tip
Recalculate your payback period after exactly 90 days of operation. Real-world results often differ from projections, and you can adjust with targeted marketing or menu pricing changes.
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 include VAT in the calculation?
Calculate with prices excluding VAT. A breakfast item of €10.90 incl. VAT is €10.00 excl. VAT. Use that €10.00 in your calculation.
What if I attract fewer guests than expected?
Calculate conservatively and use 70% of your expectation. If you expect 20 extra guests, calculate with 14. This prevents disappointments.
What about depreciation of the equipment?
You don't need to include depreciation in this calculation. You're calculating when your investment is recovered, not the accounting value.
Should I account for seasonality in the calculation?
Yes, if your establishment is seasonal. Calculate with your average month, not your peak month. This gives you a more realistic picture.
What are typical food cost percentages for breakfast?
Breakfast typically has lower food cost than lunch or dinner. Common range is 25-32%, because bread, eggs and coffee are relatively inexpensive.
How do I factor in equipment maintenance costs?
Add 5-8% of equipment value annually for maintenance and repairs. For a €2,000 investment, budget €100-160 per year or roughly €10-15 monthly. Include this in your ongoing cost calculations.
📚 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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