Are you calculating your dish margins correctly, or are hidden packaging costs eating into your profits? Many food truck owners forget these seemingly small expenses and discover they're earning far less than expected. Here's how to calculate your true margin with every packaging cost included.
Why packaging costs matter more than you think
Everything in a food truck needs packaging: containers, bags, napkins, cutlery. These expenses appear tiny individually but quickly compound to 3-8% of your selling price.
⚠️ Watch out:
Many entrepreneurs focus only on ingredients and overlook packaging. Your margin then appears 5-8% higher than reality.
Document every packaging expense
From years of working in professional kitchens, I've seen operators miss the smallest details that add up fast. List every single item needed per portion:
- Primary packaging (container, wrap, bag)
- Lid or cover
- Napkin or paper
- Disposable cutlery (fork, knife, spoon)
- Sauce containers and lids
- Carry bags
- Logo stickers
? Example:
Hamburger menu in food truck:
- Hamburger box: €0.35
- Fries container: €0.15
- Napkin: €0.03
- Mayo container + lid: €0.08
- Carry bag: €0.12
Total packaging: €0.73 per menu
Full margin calculation breakdown
Now you can calculate your real cost price with packaging included:
Total cost price = Ingredients + Packaging
Margin % = ((Selling price excl. VAT - Total cost price) / Selling price excl. VAT) × 100
? Example calculation:
Hamburger menu for €12.50 incl. 9% VAT:
- Selling price excl. VAT: €12.50 / 1.09 = €11.47
- Ingredients: €3.80
- Packaging: €0.73
- Total cost price: €4.53
Margin: ((€11.47 - €4.53) / €11.47) × 100 = 60.5%
Annual impact breakdown
Packaging costs of €0.73 per menu look insignificant, but with 150 menus daily the numbers become substantial:
- Per day: €0.73 × 150 = €109.50
- Per month: €109.50 × 26 working days = €2,847
- Per year: €2,847 × 12 = €34,164
That's exactly why these costs must be factored into your pricing strategy.
⚠️ Watch out:
Review packaging prices regularly. Suppliers raise these more frequently than ingredient costs, but the increases are less obvious.
Smart optimization strategies
Control your packaging expenses with these tactics:
- Purchase packaging in bulk quantities for volume discounts
- Compare multiple suppliers - price variations can be dramatic
- Consider eco-friendly packaging as a marketing advantage
- Train staff to use extras like napkins efficiently
? Example optimization:
By negotiating better packaging deals:
- Was: €0.73 per menu
- Now: €0.58 per menu
- Savings: €0.15 per menu
At 150 menus/day = €5,850 savings per year
Digital tracking systems
Using tools like KitchenNmbrs allows you to record both ingredient and packaging costs per dish. You'll see your actual margin instantly and won't need manual calculations with every price adjustment.
Related articles
How do you calculate the margin including packaging? (step by step)
Inventory all packaging costs
Make a list of all packaging per dish: containers, lids, napkins, cutlery, sauce containers. Add up the costs to the cent.
Calculate total cost price per dish
Add ingredient costs and packaging costs together. This is your actual cost price per portion.
Convert selling price to excl. VAT
Divide your menu price by 1.09 to get the price excluding 9% VAT. Use this to calculate your margin.
Calculate your actual margin percentage
Use the formula: ((Selling price excl. VAT - Total cost price) / Selling price excl. VAT) × 100. This is your real margin.
✨ Pro tip
Track your top 5 menu items' packaging costs weekly for the next 30 days. You'll often discover one dish is eating up profits while another has room for price optimization.
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 margin calculation?
What percentage of my selling price should go to packaging?
How often should I check my packaging costs?
What if my margin becomes too low due to packaging costs?
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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