A hotel breakfast that's 'free' with the room definitely costs you money. Many hoteliers don't know what this breakfast actually costs or whether the room price covers it. Here's how to calculate the margin on an included breakfast step-by-step.
Why this matters
A breakfast included in the room price feels free to your guest. But for you as a hotelier, there are real costs: ingredients, staff, energy. If you don't know these costs, you don't know if your room price is high enough.
Many hotels charge too little for their rooms because they underestimate breakfast costs. The result: you think you're making a profit, but the breakfast eats into your margin.
Two methods to calculate
There are two ways to calculate the margin on an included breakfast:
- Method 1: Calculate what the breakfast costs and subtract it from your room price
- Method 2: Compare it to what you'd charge if the breakfast were sold separately
We recommend method 1, because it's the most accurate.
What do you include in breakfast costs?
For a hotel breakfast, you count more than just ingredients:
💡 Example costs per breakfast:
- Ingredients (bread, spreads, coffee, juice): €4.50
- Breakfast service staff (15 min × €15/hour): €3.75
- Energy (coffee machine, toaster): €0.50
- Dishwashing and cleaning: €0.75
Total costs per breakfast: €9.50
Calculating the margin
Now you can work out how much margin you keep:
Formula:
Breakfast margin = (Breakfast portion of room price - Breakfast costs) / Breakfast portion of room price × 100
💡 Example calculation:
Room price: €89 incl. breakfast
Estimated breakfast value: €15
Actual breakfast costs: €9.50
Margin: (€15 - €9.50) / €15 × 100 = 36.7%
You keep €5.50 margin on the breakfast.
How do you determine the breakfast value?
The trickiest question is: how much of your room price do you allocate to breakfast? After managing kitchen operations for nearly a decade, I've seen three methods work well:
- Market price: What do other hotels charge for breakfast separately?
- Cost-plus: Your costs + desired margin (e.g., €9.50 + 40% = €13.30)
- Competition: Compare room prices with/without breakfast at competitors
⚠️ Note:
Always calculate excluding VAT. Room prices have 9% VAT, just like breakfast sold separately.
Warning signs that your breakfast isn't profitable enough
Watch for these red flags:
- Your breakfast costs are higher than 70% of the estimated breakfast value
- Guests often ask for a discount if they don't eat breakfast
- Your competitors charge almost the same for rooms without breakfast
- Your breakfast costs are rising but your room prices aren't
What if the margin is too low?
Three options if your breakfast isn't profitable enough:
💡 Action plan for low margin:
- Option 1: Raise your room price by €3-5
- Option 2: Make breakfast optional (€12-15 separately)
- Option 3: Lower breakfast costs by shopping smarter
Breakfast as a marketing tool
Don't forget that an included breakfast also has marketing value. Guests book faster with 'free breakfast', even though they're paying for it in the room price.
Factor this marketing value into your decision. Sometimes a lower margin on breakfast is acceptable if it increases your occupancy rate.
How do you calculate the margin on an included breakfast?
Calculate all breakfast costs
Add up: ingredients, staff time, energy, dishwashing. Don't forget anything, including small items like sugar, milk, and napkins.
Determine the breakfast value
Check what competitors charge for breakfast separately, or calculate cost price + desired margin. This is the portion of your room price allocated to breakfast.
Calculate the margin
Subtract your costs from the breakfast value and divide by the breakfast value. Multiply by 100 for the percentage. A margin of 30-40% is standard.
✨ Pro tip
Audit your breakfast consumption rates every 6 months by counting actual plates used versus rooms occupied. Hotels often discover only 65% of guests eat the included breakfast, creating hidden profit opportunities.
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 my calculation?
Always calculate excluding VAT. Both room prices and breakfast sold separately have 9% VAT in the Netherlands. Calculate the margin based on prices excluding VAT.
What's a good margin on hotel breakfast?
A margin between 30-45% is standard. Lower than 25% means the breakfast barely contributes to your profit. Higher than 50% might mean your room price is too high.
How often should I do this calculation?
Check this at least quarterly. Ingredient prices change, and so do your staff costs. Especially after supplier price increases, recalculation is important.
What if guests don't eat breakfast but still pay for it?
Then you have 100% margin on those breakfasts. Track what percentage of your guests actually eat breakfast. If this drops below 70%, consider making breakfast optional for €12-15 separately.
How do I handle seasonal price fluctuations in ingredients?
Track your costs monthly during peak seasons when ingredient prices spike. Coffee and fresh fruit can vary 20-30% between summer and winter. Adjust your calculations accordingly to maintain profitability.
What's the difference between buffet and plated breakfast margins?
Buffet breakfasts typically have 15-20% higher food waste, reducing your margin. But they require less staff time per guest. Plated breakfasts offer better portion control and usually deliver 5-8% higher margins overall.
📚 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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