Your restaurant's quarterly profit just vanished after hiring a menu consultant for €5,000 - but you're not sure if you've booked it correctly on your P&L. Many restaurant owners struggle with whether consultancy falls under labor costs or deserves its own line item. Processing these external service costs incorrectly can distort your financial picture and lead to poor business decisions.
What are external consultancy costs?
External consultancy represents costs for specialists you bring in temporarily. We're talking about menu advisors, HACCP consultants, marketing specialists, or financial advisors. These expenses are not part of your regular personnel costs.
💡 Example:
Restaurant The Golden Spoon hires an HACCP consultant for €2.500 excl. VAT:
- Consultancy fee: €2.500
- VAT 21%: €525
- Total paid: €3.025
On the P&L, €2.500 appears as a cost line, VAT gets processed separately.
Where do consultancy costs belong on your P&L?
Consultancy costs are operational expenses, not personnel costs. They belong under a separate line like "External services" or "Consultancy & advice". This distinction matters for your cost management.
- NOT in personnel costs: Consultants aren't employees
- YES in operational costs: They're business expenses for expertise
- Book excl. VAT: VAT gets its own line item
- Per project or month: Depends on your agreement
⚠️ Note:
Consultancy carries 21% VAT, not the 9% rate for food. Always verify the invoice and book excluding VAT as your cost line.
Impact on your profit calculation
Consultancy costs directly hit your profit. They're one-time or temporary expenses that affect your EBITDA - a mistake that costs the average restaurant EUR 200-400 per month in hidden financial distortions. That's why budgeting them properly matters.
💡 Example impact:
Restaurant with €50.000 monthly revenue and €5.000 consultancy:
- Consultancy as % of revenue: 10%
- This directly impacts profit
- Normal profit 8% becomes -2%
Therefore: always budget consultancy in advance.
Different types of consultancy
Not all consultancy serves the same purpose. Some costs are investments, others are necessary expenses:
- HACCP/food safety: Mandatory compliance, operational cost
- Menu development: Investment in product, can deliver ROI
- Marketing consultant: Investment in growth, measure results
- Financial advice: Operational cost for better decisions
- IT/system implementation: One-time investment
Budgeting and planning
Plan consultancy costs ahead of time in your budget. Spread costs across multiple months if they're substantial amounts. This prevents one month from destroying your entire profit.
💡 Example spreading:
€6.000 menu consultant spread over 6 months:
- Per month: €1.000 consultancy cost
- Instead of €6.000 in one month
- Easier on cashflow
Negotiate payment terms upfront.
Measuring consultancy ROI
Always measure whether consultancy pays for itself. Especially with menu development, marketing, or operational improvements - you should expect concrete results.
- Menu consultant: Higher average bill, better food cost
- Marketing: More guests, higher revenue
- Operational: Lower costs, more efficiency
- HACCP: No fines, less risk
How do you process consultancy costs correctly? (step by step)
Create a separate cost line
Create a separate line in your accounting called "External services" or "Consultancy". Book all external advisors here, not under personnel costs.
Book excl. VAT as a cost line
The consultancy fee (excl. VAT) you book as a cost line. The 21% VAT you book separately as input VAT that you can offset.
Spread large amounts
For consultancy above €3.000 you spread the costs over 3-6 months. This prevents one month from wiping out your entire profit due to a one-time expense.
✨ Pro tip
Review your consultancy expenses every 6 months and categorize them as either 'investment' or 'maintenance' costs - this helps you spot which external services actually drive profit growth versus those that just maintain operations.
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
Does consultancy belong in personnel costs?
No, consultancy represents external services, not personnel costs. Consultants aren't employees and fall under operational expenses instead.
Can I spread large consultancy costs over multiple months?
Yes, for substantial amounts you can negotiate payment installments. Then book each month the portion you actually pay. This prevents one large hit to your monthly profit.
How do I measure if my menu consultant delivered value?
Track your average bill per guest and food cost percentage before and after implementation. A good menu consultant should improve both metrics within 3-6 months. Also monitor customer feedback and dish popularity.
📚 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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