A minimum order value for catering prevents loss-making orders. Many bakers forget that small orders have relatively expensive preparation costs. In this article, you'll learn how to calculate a realistic minimum order value that's fair for both you and your customers.
Why you need a minimum order value
With catering orders, you have fixed costs that you always incur, regardless of order size. Think about preparation time, packaging materials, delivery, or administration. With small orders, these fixed costs become so high that you run at a loss.
💡 Example:
Order of 10 rolls for a meeting:
- Rolls: €35.00
- Preparation time (30 min): €15.00
- Packaging and delivery: €8.00
- Administration: €5.00
Total costs: €63.00 for €35.00 revenue = €28.00 loss
Calculate your fixed costs per order
Your fixed costs consist of everything you do regardless of order size. These are the main items:
- Preparation time: Even small orders take 20-30 minutes to prepare
- Administration: Creating quotes, processing orders, sending invoices
- Packaging: Boxes, bags, labels cost the same
- Transport: Fuel, time, wear and tear are the same for small and large orders
💡 Example fixed costs calculation:
- Preparation time: 30 min × €30/hour = €15.00
- Administration: 15 min × €25/hour = €6.25
- Standard packaging: €5.00
- Delivery within 5 km: €12.00
Total fixed costs: €38.25 per order
Determine your minimum margin
In addition to your fixed costs, you want to make a profit. For catering, a margin of 25-35% is standard. This means your minimum order value should be:
Minimum order value = Fixed costs / (1 - Desired margin)
💡 Example:
Fixed costs €38.25, desired margin 30%:
€38.25 / (1 - 0.30) = €38.25 / 0.70 = €54.64
Minimum order value: €55.00 (rounded)
Communicate it honestly to customers
Customers understand a minimum order value if you explain it well. Be transparent about why you're doing this:
- "For quality and freshness, we prepare every order specially for you"
- "Including delivery and packaging"
- "Below €55, we can't provide a profitable service"
⚠️ Note:
Make your minimum order value clear on your website and in your quote template. Surprises afterwards annoy customers.
Alternatives for small orders
Not every customer has large orders. Offer alternatives:
- Pickup discount: 10-15% discount for pickup (saves delivery costs)
- Standard packages: Fixed combinations from €55
- Small order surcharge: €15 surcharge for orders under €55
Monitor and adjust
Check every month whether your minimum order value still makes sense. Are your costs rising? Then increase your minimum. Are you losing too many customers? Maybe you can work more efficiently on your fixed costs.
💡 Practical test:
Track for 3 months: how many orders do you get above/below your minimum? If 80% of your orders are above the minimum, your calculation is correct.
How do you calculate the minimum order value? (step by step)
Inventory all fixed costs per order
Add up: preparation time (€30/hour), administration (€25/hour), standard packaging, delivery costs. These are costs you always incur, regardless of order size.
Determine your desired profit margin
For catering, a 25-35% margin is standard. Choose a percentage that fits your market and competitive position.
Calculate minimum order value
Use the formula: Fixed costs / (1 - Desired margin). Round to a nice amount (€55 instead of €54.64).
✨ Pro tip
Communicate your minimum order value as a service level, not a limitation. 'For optimal quality and service, we work from €55' sounds more positive than 'Minimum €55 required'.
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 if customers leave because of my minimum order value?
Better 10 profitable orders than 20 loss-making ones. Customers who can't meet your minimum are often not your target group for catering.
Should I include VAT in the calculation?
Always calculate excluding VAT. Your fixed costs are also excluding VAT, so your minimum order value should be too.
Can I use different minimum order values?
Yes, for example €55 for delivery within 5 km, €75 for further away. Just keep it clear for yourself and your customers.
How often should I adjust my minimum order value?
Check every quarter whether your costs have increased. Adjust if your fixed costs have changed by more than 10%.
What if a regular customer orders below the minimum?
Make clear agreements: either they pay the minimum, or you charge a surcharge for small orders. Consistency is important.
📚 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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