Last month, a catering client served 40 executives at €19 per person and wondered why they barely broke even. They'd calculated food costs perfectly but forgot labor, service materials, and overhead. Most hospitality entrepreneurs make this same costly mistake.
What's included in the cost price of a business breakfast?
With a business breakfast, you're not just selling food—you're delivering a complete experience. You need to include all these costs:
- Food costs: bread, spreads, fruit, beverages, butter, jam
- Service costs: dishes, cutlery, napkins, tablecloths
- Labor costs: service, kitchen, dishwashing
- Location costs: space, heating, cleaning
- Overhead: purchasing, planning, administration
⚠️ Heads up:
Many entrepreneurs only calculate with food costs. Your margin looks good on paper, but you don't earn anything because you've forgotten about staff and overhead.
The basic formula for business breakfasts
For business catering, use this formula:
Selling price per person = (Food costs + Service costs + Labor costs) / Desired profit margin
Standard profit margin for business catering runs between 35-45%. This means your costs should be 55-65% of your selling price.
💡 Example calculation:
Business breakfast for 20 people, 2 hours of service:
- Food costs: €8.50 per person
- Service costs: €2.00 per person
- Labor costs: €3.50 per person
- Total costs: €14.00 per person
At 40% profit margin: €14.00 / 0.60 = €23.33 per person
Rounded: €24.50 per person incl. VAT
Calculate food costs per person
Add up all the ingredients you use per person:
- Bread: 3-4 slices = €0.80
- Spreads: cheese, meat, sweet = €3.20
- Fruit: seasonal fruit = €1.50
- Beverages: coffee, tea, juice = €2.50
- Extras: butter, jam, sugar = €0.50
Total food costs: approximately €8.50 per person. This varies depending on your quality level and suppliers, but it's a solid baseline.
💡 Example extended breakfast:
Premium business breakfast with fresh products:
- Freshly baked rolls: €1.20
- Premium spreads (organic): €4.50
- Fresh fruit and yogurt: €2.20
- Barista coffee and fresh tea: €3.10
- Extras and garnish: €0.80
Total food costs: €11.80 per person
Estimate labor costs
For a business breakfast you need staff for:
- Preparation: 1 hour for 20 people
- Service: 2 hours during breakfast
- Cleanup: 0.5 hour after
Calculate with €18-22 per hour for service staff. For 20 people you usually need 1 person for 3.5 hours = €70 total = €3.50 per person. One of the most common blind spots in kitchen management is underestimating these labor hours—prep always takes longer than you think.
⚠️ Heads up:
Always calculate with actual staff costs, including social contributions. An employee at €15/hour costs you approximately €20/hour all-in.
VAT and final price determination
Business catering falls under 9% VAT. You calculate your price excluding VAT first, then add VAT:
Final price = Cost price / Profit margin × 1.09
💡 Example VAT calculation:
Costs €14.00 per person, desired margin 40%:
- Price excl. VAT: €14.00 / 0.60 = €23.33
- VAT 9%: €23.33 × 1.09 = €25.43
- Rounded: €25.50 per person
Check: €25.50 - 9% VAT = €23.39 excl. VAT
Margin: (€23.39 - €14.00) / €23.39 = 40.1% ✓
Different price levels for different target groups
Business clients have different budgets. So create different packages:
- Basic breakfast: €18-22 per person
- Standard breakfast: €24-28 per person
- Premium breakfast: €30-35 per person
The difference lies in ingredient quality, variety and service level. This way you can serve different market segments without losing your margin.
How do you calculate the selling price of a business breakfast? (step by step)
Calculate all food costs per person
Add up: bread (€0.80), spreads (€3.20), fruit (€1.50), beverages (€2.50), extras (€0.50). Total approximately €8.50 per person. Vary this based on your quality level.
Calculate service and labor costs
Service costs (dishes, linens): €2.00 per person. Labor costs: 3.5 hours × €20/hour / 20 people = €3.50 per person. Total costs now €14.00 per person.
Determine your selling price with profit margin
At 40% desired margin: €14.00 / 0.60 = €23.33 excl. VAT. With 9% VAT: €23.33 × 1.09 = €25.43. Round to €25.50 per person as final price.
✨ Pro tip
Track your actual food waste after each business breakfast for 30 days. Most caterers discover they're over-ordering bread by 15-20% but under-ordering coffee by 10%. This data lets you fine-tune portions and boost margins.
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 profit margin is normal for business catering?
For business catering, the profit margin runs between 35-45%. This is higher than regular hospitality because you're offering more service and flexibility. Corporate clients also expect reliability, which justifies the premium.
Should I include VAT in my cost price calculation?
No, always calculate excluding VAT first. Work out your price excl. VAT, then add 9% VAT for the final customer price. This prevents confusion in your margin calculations.
How do I calculate with minimum number of people?
Set a minimum of 10-15 people for profitability. Below this number, your fixed costs like preparation and travel time become too high per person. Consider charging a setup fee for smaller groups.
What if the customer finds my price too high?
Offer a basic package with simpler ingredients instead of lowering your margin. A bread-focused breakfast can work at €18-20 per person while maintaining profitability.
How do I handle dietary restrictions without losing money?
Charge €2-4 extra per special dietary requirement (vegan, gluten-free, etc.). These alternatives cost more and require separate preparation. Most corporate clients understand and accept this surcharge.
Should I offer all-inclusive pricing or itemize everything?
All-inclusive per-person pricing works better for corporate bookings. Clients prefer budget certainty, and you avoid nickel-and-diming discussions. Build everything into your base price.
How do I prevent running out of food during service?
Calculate with 10% extra food for safety—that's roughly €0.85 extra per person. Better to have controlled leftovers than run short and damage your reputation with corporate clients.
📚 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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