Most restaurant owners believe growing herbs in pots saves money - but that's often a costly myth. The reality? Many forget to include labor, space, and equipment costs, making their 'free' herbs surprisingly expensive. Here's how to calculate what homegrown herbs actually cost per portion.
Why homegrown herbs aren't free
A supermarket basil pot costs €2.50 for 20 grams. That's €125 per kilo - sounds expensive, right? So you think: 'I'll grow it myself and save money.' But here's what most people miss: hidden costs add up fast.
⚠️ Heads up:
Most entrepreneurs only count seeds and soil, completely ignoring labor, utilities, and space costs. This creates a false sense of savings.
All costs of herb growing
For accurate costing, you need every expense:
- Initial investment: Pots, soil, seeds, grow lights
- Running costs: Water, electricity, replacement seeds
- Labor costs: Planting, watering, harvesting, prep time
- Space costs: Square footage used for growing
- Waste factor: Dead plants, unusable leaves
Calculate your yield realistically
Basil plants don't produce forever. You need realistic yield numbers per plant and growing cycle.
💡 Example basil yield:
Per plant over 3 months:
- Usable leaves: 80-120 grams
- Waste (damaged leaves): 20%
- Net yield: 65-95 grams per plant
Average: 80 grams per plant per cycle
Cost price calculation with example
Let's crunch the numbers for homegrown basil:
💡 Example: 10 basil plants
Initial costs (one-time):
- 10 pots: €30
- Potting soil: €15
- Seeds (multiple seasons): €10
- Grow light: €80
Total initial investment: €135
Costs per cycle (3 months):
- Electricity for grow light: €25
- Water: €5
- Labor (5 min/day × 90 days × €15/hour): €112.50
- Space (1m² × €10/month × 3): €30
Total per cycle: €172.50
From total costs to cost price per gram
Now divide all costs by your actual yield:
💡 Cost price calculation:
10 plants × 80 grams = 800 grams per cycle
Initial costs spread over 8 cycles (2 years): €135 ÷ 8 = €16.88 per cycle
Total costs per cycle: €172.50 + €16.88 = €189.38
Cost price: €189.38 ÷ 800 grams = €0.24 per gram
That's €240 per kilo - almost double the supermarket price! Labor costs kill the savings. From analyzing actual purchasing data across different restaurant types, this pattern repeats consistently.
Growing your own makes sense if
Homegrown herbs work financially if:
- You use expensive herbs: Fresh thyme, rosemary, tarragon (€300-500/kg)
- You've got existing space: Greenhouse or dedicated growing area
- Staff have downtime: Maintenance during slow periods
- You grow at scale: Larger quantities reduce per-unit costs
💡 Example: Tarragon growing
Tarragon costs €450/kg wholesale. Using the same calculation:
Homegrown: €240/kg
Savings: €210/kg = 47% cheaper
Calculate cost price per portion
For your food cost tracking, you need portion-level costs:
Cost price per portion = Amount used × Cost price per gram
💡 Example portion costs:
You use 2 grams fresh basil per pasta:
2 grams × €0.24 = €0.48 per portion
Supermarket basil: 2 grams × €1.25 = €2.50 per portion
Surprising result: supermarket basil actually costs less per portion, despite the high per-kilo price.
How do you calculate the cost price of homegrown herbs? (step by step)
Inventory all costs
Make a list of initial costs (pots, soil, seeds, equipment) and ongoing costs (water, electricity, labor, space). Don't forget any cost item - including your own time.
Measure your actual yield
Weigh how much usable herbs you harvest per plant during a full cycle. Subtract loss for leaves you can't use. This gives you the net yield per plant.
Calculate cost price per gram
Divide your total costs per cycle by your total yield in grams. Depreciate initial investments over multiple cycles (for example 2 years). This gives you the real cost price per gram.
Determine portion costs for your dishes
Multiply the cost price per gram by the amount you use per dish. This is the herb cost you include in your food cost calculation.
✨ Pro tip
Track your actual yield and costs for 6 months minimum before making decisions. Most growers overestimate yields by 30-40% and underestimate maintenance time significantly.
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 labor costs if I take care of the herbs myself?
Absolutely. Your time has real value and opportunity cost. Calculate using your actual hourly rate or minimum €15/hour. Skipping this creates a completely false picture of profitability.
Which herbs are most profitable to grow yourself?
Expensive herbs like tarragon, fresh thyme, rosemary, and sage offer the best returns. These cost €300-500 per kilo wholesale. Cheap herbs like parsley usually cost more to grow than buy.
How do I factor in space costs?
Calculate your kitchen's cost per square meter monthly (rent + utilities ÷ total area). Multiply by your growing space. Budget €8-12 per m² monthly for most locations.
📚 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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