High tea margins in hotel lobbies confuse many operators because you're not selling individual dishes. You charge per person with a fixed package that includes various bites, tea, and often sparkling wine. The cost structure differs completely from regular restaurant service.
What makes high tea different?
High tea operates on a per-person pricing model, not per-dish. You've got a fixed package with various bites, tea, and often sparkling wine. The cost price includes way more than just ingredients.
The costs of a high tea
High tea involves several cost categories:
- Ingredients: sandwiches, scones, pastries, tea, prosecco
- Tableware: tiered stands, cups, plates (washing or rental)
- Staff: service and kitchen
- Location costs: share of the lobby rent
💡 Example high tea for 2 people:
Selling price: €49.50 per person (incl. 9% VAT)
- Ingredients: €14.00
- Staff (30 min): €8.00
- Tableware/washing: €3.00
- Location costs: €2.00
Total costs: €27.00 for 2 people
Calculating margin
The margin formula differs from food cost calculations. You're looking at what remains after all direct costs.
Margin % = ((Selling price - Total costs) / Selling price) × 100
💡 Calculation example:
Selling price 2 people: €99.00 incl. VAT
- Excl. VAT: €99.00 / 1.09 = €90.83
- Total costs: €27.00
- Profit: €90.83 - €27.00 = €63.83
Margin: (€63.83 / €90.83) × 100 = 70.3%
⚠️ Note:
Always calculate with the price excl. VAT. High tea falls under 9% VAT, not 21%.
Where does it often go wrong?
Many hotel lobbies only calculate ingredient costs and forget the other items. This makes the margin appear higher than reality.
- Staff costs: Service takes time, even if it appears effortless
- Washing: Lots of tableware means extensive washing
- Location costs: The lobby costs rent, even during high tea service
- Purchasing waste: Fresh products that go unused
Benchmarks for high tea
From tracking this across dozens of restaurants, typical high tea margins range between 65% and 75%. Anything below 60% usually indicates underpricing or missing costs.
💡 Comparison with restaurant:
- Restaurant main course: 65-70% margin
- High tea package: 65-75% margin
- Difference: less kitchen work, more presentation
Seasons and price adjustments
High tea is seasonal. Christmas and Mother's Day are peak periods where higher prices work. In quiet months your margin may face pressure.
Review monthly if your ingredient prices remain accurate. Fresh products like salmon and seasonal fruit fluctuate considerably.
Food cost calculators for packages
A food cost calculator helps you record packages with all cost items. You'll see your margin per person directly and can quickly calculate price increase impacts.
How do you calculate the margin on a high tea? (step by step)
Gather all cost items
Add up: ingredients, staff (time × hourly rate), tableware/washing, location costs. Don't forget anything, not even the small things like sugar and milk.
Calculate selling price excl. VAT
Divide your menu price by 1.09 (at 9% VAT). High tea falls under food, so 9% VAT. For example €50.00 / 1.09 = €45.87 excl. VAT.
Apply the margin formula
Margin % = ((Selling price excl. VAT - Total costs) / Selling price excl. VAT) × 100. Check that you come out above 60% for a healthy margin.
✨ Pro tip
Track your high tea margins weekly during peak seasons like December and May. Hotels typically see 18-25% higher margins during these periods due to premium pricing opportunities.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
Was this article helpful?
Frequently asked questions
What VAT applies to high tea?
High tea falls under food service with 9% VAT, not 21%. Even with prosecco included, the entire package gets 9% VAT treatment.
Should I include location costs in the calculation?
Yes, if you use lobby space for high tea, include a portion of rent costs. Otherwise your margin appears artificially high.
What is a good margin for high tea?
Typical margins range between 65% and 75%. Below 60% usually means underpricing or missing cost components.
How do I factor in staff costs?
Estimate service and kitchen time per high tea session. Multiply by hourly rate including employer contributions (roughly hourly rate × 1.3). Don't forget setup and cleanup time.
📚 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.
Calculate events and catering down to the cent
Group arrangements, buffets and events are complex. KitchenNmbrs calculates total food cost per person, per course, per event. Start free.
Start free trial →