Most restaurant owners splurge on kitchen equipment based on excitement, while smart operators crunch the numbers first. A salamander or combi-steamer costs thousands of euros but can transform your kitchen's efficiency. Here's how to calculate whether that investment actually pays off.
What is return on investment (ROI) for kitchen equipment?
ROI reveals how many euros you earn per euro invested. For kitchen gear, you divide annual savings by purchase price.
ROI formula: (Annual savings / Purchase price) × 100
💡 Example: Combi-steamer
Purchase price: €8,000
- Time savings: 2 hours/day × €22/hour = €44/day
- Energy savings: €15/day
- Less waste: €10/day
Total savings: €69/day × 300 working days = €20,700/year
ROI: (€20,700 / €8,000) × 100 = 259% per year
Which savings should you count?
New machines save money in multiple ways. Add up all measurable savings for an accurate picture:
- Labor savings: Less time needed = lower labor costs
- Energy savings: Efficient machines use less gas/electricity
- Reduced waste: Better temperature control = fewer ruined dishes
- Higher capacity: More covers in same time = increased revenue
- Quality improvement: Consistent preparation = happier guests
⚠️ Note:
Only count savings you can measure. "Better quality" sounds nice but can't be quantified easily. Focus on time, energy, and waste reduction.
Calculate labor savings
Time equals money in professional kitchens. Measure time saved and convert it to labor costs.
💡 Example: Salamander
Without salamander: 5 minutes per dish to gratinée in oven
With salamander: 1 minute per dish
- Time savings: 4 minutes per dish
- Dishes per day: 80
- Total savings: 320 minutes = 5.3 hours/day
- Labor costs: €22/hour (including employer contributions)
Labor savings: 5.3 × €22 = €117/day
Calculate energy savings
Modern equipment typically runs more efficiently. Calculate consumption differences and multiply by your energy rates.
- Gas: €0.80 per m³ (average 2024)
- Electricity: €0.30 per kWh (average 2024)
- Usage time: Only count hours equipment actually operates
💡 Example: Energy savings combi-steamer
Old oven: 15 kW × 8 hours × €0.30 = €36/day
Combi-steamer: 12 kW × 6 hours × €0.30 = €21.60/day
Energy savings: €36 - €21.60 = €14.40/day
Calculate payback period
Beyond ROI, payback period matters. This shows how many months you need to recover your investment.
Payback period = Purchase price / Monthly savings
💡 Example: Payback period
Combi-steamer: €8,000 purchase price
Daily savings: €69
- Monthly savings: €69 × 25 working days = €1,725
- Payback period: €8,000 / €1,725 = 4.6 months
After 5 months you're profiting from the machine
Include financing costs
If you finance the machine, subtract monthly interest and repayment from your savings. I've seen this mistake cost the average restaurant EUR 200-400 per month - they forget financing eats into profits.
- Lease: Include monthly lease payments
- Loan: Interest plus repayment per month
- Cash: No extra costs, but your money isn't earning interest
⚠️ Note:
Don't forget maintenance costs. A combi-steamer requires €500-1,000 annually in maintenance. Subtract this from your savings.
Determining if an investment's worthwhile
Use these benchmarks to evaluate whether an investment makes sense:
- ROI > 25%: Excellent investment
- ROI 15-25%: Solid investment
- ROI < 15%: Questionable, unless strategically necessary
- Payback period < 2 years: Acceptable risk
- Payback period > 3 years: High risk
Tools like KitchenNmbrs help track actual dish costs, so you can verify whether equipment investments truly boost your margins.
How do you calculate the ROI of kitchen equipment? (step by step)
Determine the total purchase price
Add up the machine price, installation costs, training, and any renovations. This is your total investment.
Measure current costs
Note how much time, energy, and materials you currently spend on the processes the new machine will replace. Measure this for one week.
Calculate daily savings
Work out how much time, energy, and waste you save per day. Multiply by the rates (€22/hour labor, €0.30/kWh electricity).
Calculate annual savings
Multiply the daily savings by your number of working days per year (usually 250-300 days).
Calculate ROI and payback period
ROI = (annual savings / purchase price) × 100. Payback period = purchase price / monthly savings.
✨ Pro tip
Track your current cooking times for exactly 14 days before purchasing any equipment. This baseline data ensures you calculate realistic time savings, not wishful thinking.
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's considered a good ROI for kitchen equipment?
An ROI of at least 25% annually is excellent for kitchen gear. Between 15-25% is solid, while below 15% becomes questionable unless strategically necessary.
Should maintenance costs be included in calculations?
Absolutely - subtract annual maintenance from your savings. A combi-steamer runs €500-1,000 yearly in maintenance, while a salamander costs about €200-400 annually.
How do I calculate labor savings if I work in the kitchen myself?
Use €22 per hour, even for your own time. Less kitchen time means more time for revenue-generating activities like marketing or customer service.
What if the machine breaks after 2 years?
Base calculations on expected lifespan - typically 8-12 years for professional kitchen equipment. Choose brands with solid warranties and available spare parts to minimize risk.
📚 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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