Every January, thousands of food truck owners discover they've been pricing themselves into bankruptcy. Most calculate ingredient costs but ignore fixed expenses like fuel, insurance, and truck depreciation. Here's how to price portions that actually cover all costs and generate profit.
What are your total costs?
Food trucks face three distinct cost categories:
- Variable costs: ingredients, packaging, napkins
- Fixed costs per day: fuel, location rent, insurance
- Fixed costs per month: truck depreciation, maintenance, permits
Every single expense must be recovered through sales. Miss one category and you're operating at a loss.
? Example food truck costs:
Daily fixed costs:
- Fuel: €45
- Location rent: €80
- Insurance (daily portion): €12
- Truck depreciation (daily portion): €35
Total fixed costs per day: €172
The break-even formula
Calculate your minimum selling price with this formula:
Minimum selling price = (Fixed costs per day ÷ Expected number of portions) + Variable costs per portion + Desired profit per portion
Then add VAT (9% for food).
? Example calculation:
You sell an average of 120 portions per day:
- Fixed costs per portion: €172 ÷ 120 = €1.43
- Variable costs (ingredients + packaging): €3.20
- Desired profit per portion: €2.00
Minimum price excl. VAT: €1.43 + €3.20 + €2.00 = €6.63
Minimum price incl. 9% VAT: €6.63 × 1.09 = €7.23
Splitting variable vs. fixed costs
Proper cost classification is critical:
- Variable: increases with every portion sold (meat, vegetables, container)
- Fixed: you pay regardless of sales volume (fuel, location)
Higher sales volume spreads fixed costs across more portions. That's why volume drives food truck profitability.
⚠️ Watch out:
Selling fewer portions than expected increases your fixed costs per portion. Always build a 15-20% buffer into pricing calculations.
Accounting for seasons and locations
Food truck sales fluctuate dramatically. From analyzing actual purchasing data across different restaurant types, seasonal variations can swing 40-60% between peak and slow periods. Calculate averages over complete weeks or months:
- Busy days (Friday, Saturday): higher volume, lower fixed costs per portion
- Quiet days (Monday, Tuesday): lower volume, higher fixed costs per portion
- Seasons: winter often brings 30-50% fewer sales than summer
? Example weekly planning:
Average portions per week:
- Monday-Thursday: 80 portions/day
- Friday-Saturday: 180 portions/day
- Sunday: 120 portions
Weekly average: (80×4 + 180×2 + 120) ÷ 7 = 120 portions/day
Use this average for minimum pricing calculations.
Verification: does your calculation work?
Test calculations with these reality checks:
- Are ingredient costs realistic? (verify against recent purchase invoices)
- Did you capture all fixed costs? (small expenses accumulate quickly)
- Is expected volume achievable? (avoid optimistic projections)
- Is your final price competitive? (research competitor pricing)
Food cost management tools can automatically incorporate all these expenses into cost calculations, ensuring you always charge enough to stay profitable.
How do you calculate the minimum selling price? (step by step)
Inventory all fixed costs per day
Add up all costs you incur regardless of how much you sell: fuel, location rent, insurance, truck depreciation, permits (converted per day). Don't forget small items - they add up.
Calculate variable costs per portion
Add up all ingredients for one portion, plus packaging, napkins and cutlery. These are your direct costs per sold portion. Use recent purchase prices.
Estimate your average volume per day
Realistically calculate how many portions you sell on average per day. Include quiet and busy days, plus seasonal effects. Don't be too optimistic.
Calculate fixed costs per portion
Divide your total fixed costs per day by your expected number of portions. This is the amount each portion needs to contribute to your fixed costs.
Add everything up and include VAT
Fixed costs per portion + variable costs + desired profit = price excl. VAT. Multiply by 1.09 for the final price including 9% VAT.
✨ Pro tip
Track your actual daily portion sales for 30 days and compare against your pricing calculations. If you're consistently selling 20% more than projected, you can reduce prices by €0.30-0.50 per portion to gain competitive advantage.
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 cost price calculation?
What if my daily sales vary dramatically?
How frequently should I recalculate my minimum prices?
What if my calculated minimum price exceeds market rates?
Should each menu item have different minimum prices?
How do I handle seasonal menu items with limited sales data?
What profit margin should I target above my minimum price?
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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