Are you throwing all your marketing expenses into a generic 'other costs' bucket? Many restaurant owners process marketing costs incorrectly on their P&L, losing valuable insight into what actually drives revenue. Here's how to categorize marketing expenses properly and track their real impact.
Where do marketing costs belong on your P&L?
Marketing costs sit in their own category between gross margin and net result. They don't belong with operational expenses like rent or payroll, and they're definitely not part of your food cost.
💡 Example P&L structure:
- Revenue: €50,000
- Less: Food cost (30%): €15,000
- = Gross margin: €35,000
- Less: Staff costs: €18,000
- Less: Rent & utilities: €8,000
- Less: Marketing costs: €2,500
- Less: Other costs: €3,000
- = Net result: €3,500
Which costs fall under marketing?
Don't lump everything promotion-related into marketing. After managing kitchen operations for nearly a decade, I've learned to separate structural marketing from one-off promotional activities:
- Digital advertising: Google Ads, Facebook campaigns, Instagram promotions, website updates
- Traditional marketing: Print flyers, radio spots, local newspaper ads, community sponsorships
- Platform fees: Delivery app marketing services, social media management tools
- Creative assets: Professional food photography, menu design, brand materials
⚠️ Note:
Delivery platform commission (15-30%) gets deducted from revenue, not counted as marketing. Only their additional promotional services qualify as marketing expenses.
How much should marketing cost?
Most restaurants spend between 3% and 8% of revenue on marketing. New establishments might exceed this temporarily, while established spots often run leaner campaigns.
💡 Example calculation:
Monthly revenue: €40,000
- At 5% marketing: €2,000/month budget
- Google Ads: €800
- Instagram promotion: €300
- Print materials: €200
- Website/photography: €400
- Local sponsorship: €300
Total: €2,000 (exactly 5%)
How do you measure return?
Marketing without tracking is just expensive guessing. Monitor these metrics monthly to see what's actually working:
- Cost per acquisition (CPA): Total marketing spend / new customers gained
- Return on ad spend (ROAS): Additional revenue / marketing investment
- Customer lifetime impact: Are these new customers returning regularly?
💡 Return example:
Google Ads campaign: €500 investment
- 20 new customers acquired
- CPA: €500 / 20 = €25 per customer
- Additional revenue: €1,800
- ROAS: €1,800 / €500 = 3.6x
Every marketing euro generated €3.60 in return. That's solid performance.
Seasonal budget vs. structural marketing
Smart operators adjust marketing spend based on seasonal patterns. Quiet months need more promotion, busy periods require less aggressive spending.
- January-February: 8-10% of revenue (slow season, boost needed)
- March-October: 4-6% of revenue (standard operations)
- November-December: 2-4% of revenue (natural busy period)
⚠️ Note:
Never completely halt marketing during peak periods. Maintaining brand visibility ensures customers remember you during slower times.
Digital tracking and administration
Create a dedicated marketing expense category in your accounting system. Tools like a food cost calculator can help organize your P&L and quickly identify which campaigns deliver results.
Essential documents to maintain:
- Platform advertising invoices
- Campaign performance reports
- Creative service receipts
- Sponsorship contracts
How do you process marketing costs correctly? (step by step)
Create a separate marketing category
Add a separate line 'Marketing costs' on your P&L between your operational costs and net result. Don't throw marketing into 'other costs' - then you lose track.
Determine your monthly budget
Calculate 3-8% of your monthly revenue as marketing budget. New businesses can temporarily go to 10%, established businesses can get by with 3-4%.
Track results per channel
Keep track of which marketing brings in how many new customers and revenue. Calculate your ROAS (return on ad spend) - it should be at least 2.5x to be profitable.
Evaluate monthly
Check each month: which marketing worked well, which didn't? Shift budget from poor performing to well performing channels.
✨ Pro tip
Reserve exactly 15% of your monthly marketing budget for testing new channels over a 90-day period. Spend the remaining 85% on proven tactics that already deliver measurable results.
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 delivery app commission count as marketing costs?
No, platform commission (15-30%) gets deducted directly from revenue. Only additional marketing services purchased from delivery apps qualify as marketing expenses.
What's a realistic marketing budget for a new restaurant?
New restaurants typically need 8-10% of revenue for their first 6 months. Once you've established a regular customer base, you can scale back to 4-6% of monthly revenue.
How do I measure if my Google Ads are paying off?
Calculate your ROAS by dividing additional revenue by advertising costs. A 3x ROAS means every marketing euro generates €3 in revenue, which indicates strong performance.
Should I stop marketing during busy periods?
Reduce your budget to 2-4% during peak months, but don't stop entirely. Maintaining brand awareness ensures customers remember you during quieter periods ahead.
📚 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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