A €3 staff meal might seem insignificant, but across four employees working six days a week, you're looking at nearly €4,000 annually. Most restaurant owners forget to include these costs in their labor calculations. Your actual personnel costs end up higher than expected.
Why include staff meals in labor costs?
Free meals for your team cost real money. You buy those ingredients, and your chef's time preparing staff meals can't be spent on guest dishes. These expenses belong in labor costs, not food cost.
⚠️ Note:
Do NOT include staff meals in your food cost of sold dishes. They are labor costs, not revenue-related costs.
Calculate the cost per staff meal
You calculate staff meal cost prices exactly like any other dish: add up ingredients and figure out total cost.
💡 Example:
Staff meal pasta with vegetables:
- Pasta: €0.80
- Vegetables: €1.20
- Sauce: €0.60
- Oil, spices: €0.40
Cost per meal: €3.00
Keep it simple - staff meals don't need expensive ingredients. Often you can use leftovers from mise-en-place or create simple dishes from guest ingredients.
Calculate how much this costs per year
Multiply meal cost by employee count and working days to get annual costs. This mistake costs the average restaurant EUR 200-400 per month in untracked expenses.
💡 Example calculation:
Restaurant with 4 employees, open 6 days weekly:
- Cost per meal: €3.00
- Employees per shift: 4
- Working days per week: 6
- Weeks per year: 52
Calculation: €3.00 × 4 × 6 × 52 = €3,744 per year
Add to your labor costs percentage
Add annual staff meal costs to total labor expenses. This creates a more realistic picture of actual personnel costs.
- Gross wages: salary payments
- Employer contributions: social security, pension contributions
- Staff meals: ingredient costs of free meals
- Other employment benefits: travel allowance, work clothing
💡 Example total calculation:
Restaurant with €400,000 annual revenue:
- Gross wages + employer contributions: €120,000
- Staff meals: €3,744
- Total labor costs: €123,744
Labor costs percentage: €123,744 / €400,000 = 30.9%
Administrative processing
For accounting purposes, record staff meals as labor costs, not purchases for resale. In cost accounting, distinguish between ingredients for guests versus staff.
⚠️ Note:
Staff meals represent a tax benefit for employees. Check with your accountant to ensure correct payroll tax processing.
Alternative: allowance instead of free meals
Some restaurants give meal allowances rather than free food. This simplifies cost calculation - the allowance becomes part of gross wages.
- Advantage: easier administration
- Disadvantage: more expensive due to payroll tax
- Free meal: €3.00 cost to you
- €3.00 allowance: €3.00 + payroll tax = approximately €4.50 cost
How do you account for staff meals in labor costs? (step by step)
Calculate cost per staff meal
Add up all the ingredients you use for one staff meal. Calculate it just like a guest dish: include all ingredients, spices and oil. Keep it simple and use leftovers from mise-en-place where possible.
Calculate annual costs
Multiply cost per meal × number of employees × working days per week × 52 weeks. This gives you the total annual cost of staff meals that you need to include in your labor costs.
Add to total labor costs
Add the annual cost of staff meals to your gross wages and employer contributions. Divide the total by your annual revenue to get your actual labor costs percentage. Record administratively as labor costs, not as food cost.
✨ Pro tip
Calculate one standard staff meal cost weekly and track it for 4 weeks to establish your baseline. This eliminates daily calculations while giving you accurate labor cost data.
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 staff meals in my food cost percentage?
No, staff meals are labor costs, not costs of sold dishes. They belong in your total labor costs, not in your food cost of guest dishes.
What does an average staff meal cost?
A simple staff meal typically costs between €2.50 and €4.00 in ingredients. Keep it simple: pasta, rice or potatoes with vegetables and a simple sauce.
Can I use leftovers for staff meals?
Yes, as long as they're fresh leftovers from that day. Leftovers from mise-en-place or leftover ingredients are perfect for staff meals. Still count the original purchase value in your calculation.
Is a meal allowance cheaper than free food?
No, due to payroll tax an allowance costs you more than free food. A €3 allowance costs you approximately €4.50 including employer contributions, while free food costs €3 in ingredients.
📚 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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