A lunch deal is only profitable if you add up the cost price of all components together. Many hospitality entrepreneurs only calculate with the main course and forget the drink and snack. This way they sell deals for less than they cost.
Why lunch deals are often unprofitable
A lunch deal seems simple: sandwich for €4, drink for €2, snack for €1.50. Together €7.50, so you sell it for €6.95 and everyone's happy. But that's not how it works.
The problem: you're calculating with selling prices, not cost prices. That €4 for the sandwich? That's what you normally charge for it. The ingredients might cost €1.20. And that €2 for the drink? It costs you €0.40 to buy. Suddenly your nice deal becomes a loss.
⚠️ Watch out:
Always calculate with cost prices of ingredients, never with normal selling prices of individual items.
Calculating the cost price of the sandwich
Start with the main course. Add up all the ingredients that go on or in the sandwich:
- Bread itself (roll, ciabatta, etc.)
- Fillings (meat, cheese, vegetables)
- Sauces and spreads
- Garnish (lettuce, tomato, cucumber)
- Butter or oil for cooking/spreading
💡 Example sandwich calculation:
Healthy sandwich with turkey:
- Wholemeal roll: €0.35
- 75g turkey meat: €1.20
- 20g cheese: €0.25
- Lettuce, tomato, cucumber: €0.15
- Mayonnaise: €0.05
Total sandwich cost price: €2.00
Calculating the cost price of the drink
With drinks you need to distinguish between homemade and purchased:
Fresh juices (homemade):
- Fruit/vegetable costs
- Sugar or other additives
- Packaging (glass, straw, lid)
Purchased drinks:
- Purchase price bottle/can
- Any packaging for takeaway
💡 Example drink calculation:
Fresh orange juice (250ml):
- 2 oranges: €0.60
- Glass: €0.05
- Straw: €0.02
Total drink cost price: €0.67
Calculating the cost price of the snack
Snacks are often the underestimated part. Think of:
- Chips or crackers
- Piece of fruit
- Cookie or petit four
- Nuts
- Mini salad
Here too you add up all ingredients, including any garnish or packaging.
💡 Example snack calculation:
Homemade chips with dip:
- 1 potato: €0.15
- Frying oil: €0.10
- Salt and spices: €0.02
- Dip (yogurt, herbs): €0.25
- Container: €0.08
Total snack cost price: €0.60
Calculating the total cost price
Now add everything together and calculate the food cost of the complete deal:
Formula total cost price:
Sandwich cost price + Drink cost price + Snack cost price = Total cost price
💡 Complete lunch deal calculation:
- Healthy sandwich: €2.00
- Fresh orange juice: €0.67
- Homemade chips: €0.60
Total cost price: €3.27
Selling price deal: €7.95 (incl. 9% VAT)
Selling price excl. VAT: €7.29
Food cost: (€3.27 / €7.29) × 100 = 44.9%
⚠️ Watch out:
A food cost of 45% is very high. For lunch deals 35-40% is more realistic. Otherwise you won't earn enough.
Profitable lunch deal prices
Work backwards: first determine your desired food cost, then your selling price.
Formula minimum selling price:
Minimum price excl. VAT = Total cost price / (Desired food cost % / 100)
With a total cost price of €3.27 and desired food cost of 35%:
- Minimum price excl. VAT: €3.27 / 0.35 = €9.34
- Minimum price incl. 9% VAT: €9.34 × 1.09 = €10.18
Your lunch deal must cost at least €10.20 to be profitable at 35% food cost.
Pitfalls in lunch deal cost prices
Pitfall 1: Forgetting small ingredients
Butter, mayo, spices seem minor, but they add up. Include everything.
Pitfall 2: Not accounting for waste
Lettuce wilts, fruit spoils. From tracking this across dozens of restaurants, factor in 5-10% waste in your cost price.
Pitfall 3: Ignoring seasonal influences
Tomatoes cost double in winter compared to summer. Update your cost prices regularly.
Pitfall 4: Offering too many variations
Each variation has a different cost price. Keep it simple or calculate each separately.
How do you calculate the cost price of a lunch deal? (step by step)
Make an ingredients list per component
Write down all ingredients for sandwich, drink and snack. Don't forget butter, sauces, garnish or packaging. Include small amounts of spices and oil too.
Calculate the cost price per ingredient
Look up the purchase prices of all ingredients. Convert to the amount you use per portion. A 10 kg bag of potatoes for €8 means €0.80 per kg, or €0.12 for a 150 gram potato.
Add all cost prices together
Sandwich + drink + snack = total cost price of the deal. Check if this cost price fits within your desired food cost percentage of maximum 35-40% for lunch deals.
✨ Pro tip
Recalculate your lunch deal costs every 4 weeks during peak season. Price fluctuations on fresh produce can swing your food cost by 8-12% without you noticing.
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 the cost price calculation of a lunch deal?
No, always calculate excluding VAT. The cost price of ingredients contains no VAT, so neither does your selling price. A deal of €7.95 incl. VAT is €7.29 excl. VAT for your food cost calculation.
What is a good food cost for lunch deals?
For lunch deals a healthy food cost is between 35-40%. Higher than 40% becomes difficult to be profitable due to lower prices and smaller margins on lunch compared to dinner.
How often should I update the cost price of my lunch deal?
At least every 3 months or when suppliers raise prices. Especially with fresh ingredients like vegetables and fruit, prices can fluctuate significantly by season.
Should I include waste in the cost price?
Yes, factor in 5-10% waste. Especially with fresh ingredients like lettuce, tomato and fruit, there's always some loss due to spoilage or cutting waste.
Can I sell different variations of a lunch deal at the same price?
Only if all variations have roughly the same cost price. A sandwich with expensive salmon costs more than a cheese sandwich, so calculate each variant separately or choose an average cost price.
How do I handle portion control for lunch deal components?
Standardize exact portions for each component and train staff accordingly. Use measuring tools for drinks and pre-portion snacks to maintain consistent costs across all deals.
📚 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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