📝 Purchasing, suppliers & strategy · ⏱️ 3 min read

How do I calculate the margin on a dessert I bake myself...

📝 KitchenNmbrs · updated 07 Apr 2026

Quick answer
Most restaurant owners assume making desserts in-house automatically costs less than buying them - but the numbers often tell a different story. Hidden expenses like labor time, waste, and energy costs can make homemade desserts surprisingly expensive.

Most restaurant owners assume making desserts in-house automatically costs less than buying them - but the numbers often tell a different story. Hidden expenses like labor time, waste, and energy costs can make homemade desserts surprisingly expensive. The key is calculating both options with brutal honesty about every cost involved.

The real costs of homemade desserts

Homemade desserts involve way more than just ingredient costs. There are several expenses that sneak up on you if you're not tracking carefully.

? Example: Making chocolate mousse yourself

For 10 servings of chocolate mousse:

  • Ingredients: €12.50
  • Labor time: 2 hours × €18/hour = €36.00
  • Energy (oven/cooling): €2.00
  • Waste/failure (5%): €2.53

Total costs: €53.03 for 10 servings = €5.30 per serving

Hidden costs you often miss

  • Labor time: Even your own time has a dollar value attached
  • Energy costs: Ovens, mixers, and cooling equipment drain electricity
  • Waste: Failed attempts and ingredient scraps add up
  • Storage: Fridge space costs money
  • Equipment wear: Mixers and molds don't last forever

Calculating purchased desserts

Bought desserts cost more upfront, but they come with advantages that affect your bottom line in ways you might not expect.

? Example: Buying chocolate mousse

Purchased chocolate mousse from supplier:

  • Purchase price: €4.80 per serving
  • Labor time: 5 minutes × €18/hour = €1.50
  • No energy costs for preparation
  • No waste (order what you need)

Total costs: €6.30 per serving

Benefits of buying

  • Consistency: Every portion looks and tastes identical
  • Zero waste: Order exactly what you'll sell
  • Time freedom: Focus your energy on signature dishes
  • Less inventory: No ingredients sitting around tying up cash
  • Risk reduction: Running low? Just reorder

⚠️ Note:

Don't skip your own labor costs in calculations. Value your time at €15-20 per hour minimum, or you'll make decisions based on false numbers.

The comparison formula

Use this equation for both options to get accurate numbers:

Total cost price = Ingredients + Labor + Energy + Waste + Storage

? Example: Tiramisu comparison

Making yourself (per serving):

  • Ingredients: €2.80
  • Labor (15 min): €4.50
  • Energy: €0.30
  • Waste (8%): €0.61

Total homemade: €8.21 per serving

Buying:

  • Purchase price: €6.50
  • Labor (garnishing): €1.50

Total purchased: €8.00 per serving

Making yourself makes sense for

In-house production works better in these scenarios:

  • High volumes: Fixed costs spread across more portions
  • Simple recipes: Minimal labor investment required
  • Signature items: Can't buy your grandmother's secret recipe
  • Cheap labor periods: Slow shifts or intern programs

Buying wins for

Purchasing makes more financial sense for:

  • Low volumes: Under 20 servings weekly
  • Complex desserts: High labor time and failure risk
  • Maxed-out kitchens: No bandwidth for extra production
  • Space constraints: Limited storage for ingredients

⚠️ Note:

From tracking this across dozens of restaurants, I've seen owners consistently undervalue their labor at €12-15 per hour. Factor in payroll taxes and benefits - €18-25 per hour is realistic.

Impact on your food cost

Both options use the same food cost calculation:

Food cost % = (Total cost price dessert / Selling price excl. VAT) × 100

? Example: Food cost comparison

Tiramisu selling price: €12.50 incl. VAT = €11.47 excl. VAT

  • Making yourself: €8.21 / €11.47 × 100 = 71.6% food cost
  • Buying: €8.00 / €11.47 × 100 = 69.7% food cost

Difference: 1.9 percentage points. At 100 servings monthly, this saves €24 in margin.

Food cost tracking systems help you monitor exact cost prices for each dessert and spot which option delivers better margins.

How do you compare making yourself versus buying? (step by step)

1

Calculate all costs of making yourself

Add up: ingredients, labor time (€18-25/hour), energy costs, waste (5-10%) and storage costs. Don't forget any cost item.

2

Calculate the costs of buying

Take the purchase price per serving plus any labor for garnishing or finishing. Also add transport costs if applicable.

3

Compare the total cost price per serving

Divide both amounts by your selling price excl. VAT for the food cost percentage. Choose the option with the lowest total cost price.

✨ Pro tip

Recalculate your dessert costs every 8 weeks and compare actual waste percentages to your estimates. Ingredient prices shift constantly, and a dessert that made sense to buy in January might be cheaper to make by March.

Calculate this yourself?

In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.

Try KitchenNmbrs free →

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Frequently asked questions

Should I include my own labor time as an entrepreneur?
Absolutely - your time has value even as the owner. Calculate at least €15-20 per hour, or you'll make decisions based on incomplete data. Many owners skip this and wonder why their "profitable" desserts don't improve cash flow.
How do I calculate waste when baking myself?
Add 5-10% to ingredient costs for standard desserts to cover failed batches and scraps. Complex items like soufflés or layered cakes can hit 15% waste rates.
What about the quality difference between homemade and purchased?
Quality suppliers often deliver more consistent results than in-house production. Test multiple suppliers and factor quality into your decision - not just price. A dessert that looks perfect every time might justify higher costs.
ℹ️ This article was prepared based on official sources and professional expertise. While we strive for current and accurate information, the content may differ from the most recent regulations. Always consult the official authorities for binding standards.

Sources consulted

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.

JS

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.

8 years kitchen manager at 1NUL8 Group Rotterdam
Expertise: food cost management HACCP kitchen management restaurant operations food safety compliance

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