Social media management costs between €800-2500 monthly, but placement on your P&L depends entirely on your working relationship. External freelancers belong under marketing expenses while employees go to personnel costs. Clear categorization prevents accounting headaches and reveals your true marketing spend.
Social media: marketing or personnel costs?
Your P&L placement depends on the working arrangement:
- External freelancer/agency: Marketing costs
- Employee on payroll: Personnel costs
- Do it yourself + tools: Marketing costs (tools) + your time
💡 Example external social media manager:
Bistro The Foodie works with a freelancer for €1200/month
- Social media management: €1200
- Photography (1x/month): €300
- Paid advertising: €400
Total marketing costs: €1900/month
Personnel costs vs. marketing costs
The distinction affects your bottom line calculations:
Personnel costs include:
- Gross salary
- Employer contributions (social premiums, approximately 25%)
- Holiday pay and 13th month bonus
- Possible pension and travel allowance
Marketing costs include:
- Freelancer/agency invoice (incl. VAT)
- Content tool costs (Canva, Later, etc.)
- Advertising budget on platforms
💡 Example employee on payroll:
Restaurant Luna hires someone for 20 hours/week
- Gross salary: €1400/month
- Employer contributions: €350/month
- Holiday pay: €117/month (8.33%)
- Tools and advertising: €200/month
Personnel costs: €1867/month + €200 marketing = €2067 total
What's normal for social media spending?
Standard percentages of your revenue:
- Total marketing: 3-8% of revenue
- Social media portion: 1-3% of revenue
- Paid advertising: 0.5-2% of revenue
⚠️ Note:
Always calculate social media costs into your menu price. If you spend €2000/month and serve 1000 covers, social media costs you €2 per guest.
Measuring social media ROI
Monitor these metrics to determine profitability:
- New followers per month: growth of your reach
- Website clicks: how much traffic from social
- Reservations via social: direct conversion
- Revenue per social media euro: ROI calculation
Miscategorizing these expenses is a mistake that costs the average restaurant EUR 200-400 per month in missed tax deductions and unclear budget tracking. You'll lose sight of actual marketing performance and potentially overpay on taxes.
💡 ROI calculation:
If you spend €1500/month on social media and it brings in 50 extra guests:
- Average bill: €35
- Extra revenue: 50 × €35 = €1750
- ROI: (€1750 - €1500) / €1500 = 17% return
That's a healthy ROI for marketing.
Administration and VAT
Don't overlook these practical considerations:
With external parties:
- Always request an invoice with VAT
- You can reclaim VAT (if you're VAT-liable)
- Keep all invoices for your bookkeeping
With employees:
- Withhold income tax and social contributions
- File payroll tax return monthly
- Employment contract with clear responsibilities
How do you account for social media costs on your P&L?
Determine the type of arrangement
External freelancer/agency = marketing costs. Employee on payroll = personnel costs. This determines where it goes on your P&L.
Calculate total monthly costs
Add up: management fee, tools, advertising budget and for employees also employer contributions and holiday pay. Calculate everything as a monthly amount.
Check if the percentage is right
Total social media costs should be between 1-3% of your revenue. At €50,000 revenue/month, €500-1500 on social media is normal.
Split costs correctly
Put management on marketing, advertising budget on marketing, and for employees put salary on personnel costs. Keep this consistent.
✨ Pro tip
Require your social media manager to provide monthly performance reports showing follower growth, engagement rates, and trackable reservations within 48 hours of month-end. This data helps you calculate true ROI and adjust your €1500-2000 monthly investment accordingly.
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
Can I deduct social media costs from taxes?
Yes, as a business owner you can deduct both external costs and personnel costs for social media. Keep all invoices and contracts well organized for your accountant.
What if I do social media myself alongside running my restaurant?
Then you only have costs for tools (€20-100/month) and advertising. You don't count your own time as a cost, but you should consider it as opportunity cost.
Can a social media manager also handle other marketing tasks?
Many managers also do website updates, newsletters and photography. Split the costs proportionally across different marketing activities for accurate P&L tracking.
📚 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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