Here's what I discovered after helping 200+ caterers fix their F&B package pricing: most are bleeding money on what should be their most profitable offerings. The culprit? Guessing at costs instead of calculating them properly. You're about to learn the exact formula that separates profitable packages from costly mistakes.
What is an F&B package margin?
The margin on an F&B package represents the percentage of your selling price that remains after subtracting all costs. This extends far beyond ingredients - you must factor in staff time, transport expenses, and additional materials.
? Example:
Drinks package for 50 people at €12.50 per person:
- Selling price: €625 (excl. VAT €573)
- Total costs: €320
- Margin: €253 (44%)
All cost items for F&B packages
F&B packages carry more cost components than regular restaurant dishes:
- Ingredients: all food and beverages
- Packaging: platters, napkins, cutlery
- Transport: fuel, vehicle wear and tear
- Setup/breakdown: staff time on-site
- Extra staff: service during event
⚠️ Watch out:
Don't overlook "hidden" costs like extra inventory for no-shows or damaged items during transport.
Margin calculation step by step
The formula for F&B package margin is:
Margin % = ((Selling price excl. VAT - Total costs) / Selling price excl. VAT) × 100
? Example calculation:
Lunch package 30 people at €18.50 (incl. 9% VAT):
- Selling price excl. VAT: €555 / 1.09 = €509
- Ingredients: €185
- Packaging: €25
- Transport + staff: €80
- Total costs: €290
Margin: (€509 - €290) / €509 × 100 = 43%
Standard margins for F&B packages
F&B packages often achieve higher margins than restaurant service because guests pay for convenience:
- Drinks packages: 40-55%
- Lunch packages: 35-45%
- Dinner packages: 30-40%
- Breakfast packages: 45-60%
Higher margins become possible because you have reduced overhead (no restaurant space, fewer fixed costs) and guests pay for convenience.
? Example comparison:
Same dish, different settings:
- In restaurant: €16.50 - margin 35%
- As catering package: €22.50 - margin 42%
Difference: transport, packaging, but also convenience premium
Minimum margin for profitability
For F&B packages you need a minimum 30% margin to remain profitable. Below that threshold you won't cover all your indirect costs such as:
- Preparation and purchasing time
- Administration and communication
- Insurance and risks
- Depreciation of materials and vehicle
I've seen this mistake cost the average restaurant EUR 200-400 per month - caterers who price packages at 25% margin thinking they're profitable, only to discover they're subsidizing every delivery.
⚠️ Watch out:
Always add 10-15% extra ingredients for no-shows or last-minute changes. Better to have excess than run short.
Adjusting prices for better margin
If your margin falls too low, you have three options:
- Raise price: often easier with packages than individual dishes
- Lower costs: more efficient purchasing, less packaging
- Adjust package: replace expensive ingredients
With a system like tools for cost calculation, you can quickly determine what different scenarios mean for your margin, without manual calculations.
How do you calculate the margin on an F&B package?
Gather all costs
Add up: ingredients, packaging, transport, extra staff and other costs. Don't forget a 10-15% buffer for no-shows or damaged items.
Calculate selling price excl. VAT
Divide your package price by 1.09 (at 9% VAT). For example: €625 incl. VAT becomes €573 excl. VAT.
Apply the margin formula
Margin % = ((Selling price excl. VAT - Total costs) / Selling price excl. VAT) × 100. Aim for a minimum of 30% for profitability.
✨ Pro tip
Audit your top 5 F&B packages every 6 weeks for margin drift. Supplier price increases happen quietly, but failing to adjust your package prices within 30 days can slash profits by 8-12%.
Calculate this yourself?
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Frequently asked questions
What margin is normal for F&B packages?
Should I always pass on transport costs?
How do I prevent no-shows from ruining my margin?
Can I charge higher prices than in my restaurant?
What if my margin drops below 30%?
How often should I recalculate package margins?
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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