How much profit should you really make on that €8.50 burger at the Saturday market? Food truck gross margins typically fall between 60-75%, beating traditional restaurants since you avoid fixed service costs. Stand fees, purchasing power, and location still determine your actual take-home profit though.
What is gross margin and why does it matter?
Gross margin shows the gap between your selling price and cost price, expressed as a percentage. For food trucks, this metric matters because your profit depends directly on smart purchasing and strategic pricing decisions.
💡 Example:
A hamburger sandwich at the weekly market:
- Selling price: €8.50 (incl. 9% VAT)
- Selling price excl. VAT: €7.80
- Cost of ingredients: €2.34
Gross margin: (€7.80 - €2.34) / €7.80 × 100 = 70%
Normal gross margin ranges for food trucks
Your margin varies dramatically based on what you're selling:
- Fries and snacks: 75-85% (low ingredient costs)
- Burgers and sandwiches: 65-75%
- Fresh salads: 60-70% (pricier ingredients)
- Coffee and beverages: 80-90%
- Ice cream and desserts: 70-80%
⚠️ Note:
High gross margin doesn't guarantee profit. Stand fees, fuel, and labor costs still need covering. Always calculate down to your net margin.
Weekly market specific costs that affect your margin
Markets bring extra expenses that chip away at your gross margin:
- Stand fee: €50-150 per market day
- Generator fuel: €15-25 per day
- Travel time and truck fuel: €20-40 per day
- Extra packaging: everything must be portable
💡 Example calculation:
Saturday weekly market with 100 sales at €8.50:
- Revenue: €850
- Cost of goods (30%): €255
- Gross margin: €595 (70%)
- Stand fee + costs: €120
Net before labor: €475 (56% of revenue)
How do you optimize your gross margin?
After managing kitchen operations for nearly a decade, I've seen margins improve through smart purchasing and efficient prep work:
- Buy seasonal: tomatoes in summer, pumpkin in fall
- Direct suppliers: skip wholesalers where possible
- Standard portion sizes: prevent over-serving
- Menu engineering: push high-margin products
Digital help with cost price calculation
Most food truck owners track cost prices in Excel or on paper. This approach works but takes time and invites errors. Apps like KitchenNmbrs automatically calculate cost prices and track gross margins per product, even while you're on the road.
How do you calculate your gross margin? (step by step)
Collect all cost of goods per product
Add up all ingredients that go into one portion. Don't forget the small things: sauces, spices, packaging, napkins. Use your actual purchase prices, not catalog prices.
Calculate your selling price excluding VAT
Divide your menu price by 1.09 to get the price excluding 9% VAT. This is your actual selling price for the calculation. For example: €8.50 / 1.09 = €7.80.
Apply the formula
Gross margin % = (Selling price excl. VAT - Cost of goods) / Selling price excl. VAT × 100. Check if you're between 60-75%. Lower means too little margin, higher could mean you're too expensive.
✨ Pro tip
Track your top 5 selling items weekly for gross margin changes. If those stay above 65%, you've got 75% of your revenue protected from margin erosion.
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
What is a good gross margin for a starting food truck?
Aim for at least 65% gross margin to cover fixed costs. As a beginner, you'll often face higher costs due to smaller purchasing volumes and less experience with portion control.
Should I include VAT in my gross margin calculation?
Never include VAT in margin calculations since that money goes to the tax authority. Divide your menu price by 1.09 to get the price excluding VAT.
How often should I check my gross margin?
Review gross margin per product monthly at minimum. Suppliers adjust prices regularly, so you need to update selling prices to maintain margins.
What if my gross margin drops below 60%?
You're likely not earning enough to survive. Check purchase prices, reduce portion sizes, or raise selling prices. Otherwise nothing remains after covering stand fees and labor 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
- 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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