Most corporate restaurants think they're profitable until they actually calculate their true meal costs. The reality? Many catering companies just estimate this figure, unknowingly losing money on every single portion. You'll discover exactly what each meal costs, including those sneaky hidden expenses.
What's included in the cost price?
Your meal's cost price goes way beyond what sits on the plate. For accurate calculations, you need everything required to make and serve that one meal.
- Main ingredients: meat, fish, vegetables, rice, pasta
- Garnishes and side dishes: sauce, spices, bread
- Packaging: plates, containers, cutlery (for takeaway)
- Loss and waste: peels, cutting loss, spillage
⚠️ Note:
Packaging costs slip by most corporate restaurants. Serving 500 meals daily? You're looking at €2000+ monthly difference.
Basic formula for cost price calculation
Here's your cost price formula:
Cost price per meal = (Total ingredient costs + Packaging costs + Loss percentage) / Number of portions
That loss percentage? It's critical. Cutting loss, spillage, and portion variation eat into your purchases every time. Corporate catering should factor in 8-12% loss as standard.
💡 Example: Chicken curry for 100 people
Ingredients for 100 portions:
- Chicken fillet: €85.00
- Rice: €12.00
- Vegetables: €28.00
- Sauce and spices: €15.00
- Packaging: €25.00
Subtotal: €165.00
Plus 10% loss: €165.00 × 1.10 = €181.50
Cost price per portion: €181.50 / 100 = €1.82
Including cutting loss and spillage
Cutting loss silently drains your profits. Buy 10 kg potatoes, end up with 8.2 kg after peeling. That missing 1.8 kg must factor into your cost calculations.
- Vegetables (peeling): 15-25% loss
- Meat (boning, trimming): 10-20% loss
- Fish (filleting): 40-50% loss
- General spillage: 5-8% of total purchase
Don't base calculations on purchase price—use the real price after loss:
Actual price per kg = Purchase price / (100% - loss percentage)
💡 Example: Potatoes with cutting loss
You buy potatoes for €1.20/kg. After peeling you've got 20% loss.
Actual price: €1.20 / 0.80 = €1.50/kg
That €0.30 difference must be included in your cost price!
Seasons and price fluctuations
Ingredient prices shift constantly. Winter tomatoes cost triple summer prices. Update cost calculations monthly minimum, or more often during major price swings.
Break it down by:
- Fixed menus: calculate average annual price
- Changing menus: calculate per season
- Daily menus: calculate weekly based on current purchases
Controlling portion size
Uncontrolled portions destroy profitability faster than anything else. Calculate for 150g meat but serve 180g? Your cost jumps 20% without you realizing it—the kind of thing you only learn after closing your first month at a loss.
⚠️ Note:
Measure actual portions regularly. Serving 1000 meals daily with an extra 30g meat per portion? You're hemorrhaging €15,000+ annually.
Cost price vs. selling price
Your cost price sets your minimum selling threshold. Corporate catering typically runs 35-45% food cost (higher than restaurants due to tighter margins).
Minimum selling price = Cost price per meal / (Desired food cost percentage / 100)
💡 Example: From cost price to selling price
Cost price per meal: €2.10
Target food cost: 40%
Minimum selling price: €2.10 / 0.40 = €5.25
Including 9% VAT: €5.25 × 1.09 = €5.72
How do you calculate cost price per meal? (step by step)
Make a complete ingredient list
Write down all ingredients that go into the dish, including spices, oil, sauce and garnish. Don't forget packaging if you make takeaway meals. Be thorough - even a teaspoon of oil counts.
Calculate quantities per portion and total purchase
Determine how many grams of each ingredient you need per person. Multiply this by the number of portions you make. Add 10-15% loss for cutting loss and spillage.
Calculate the total cost and divide by portions
Multiply all quantities by current purchase prices. Add everything up and divide by the number of portions. This is your cost price per meal excluding labor and overhead.
✨ Pro tip
Weigh actual portions on your 5 highest-volume dishes every Tuesday morning for 4 weeks straight. Most operators discover they're serving 25-35% more than calculated, which explains those mysterious profit shortfalls.
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 labor costs in the cost price per meal?
No, cost price per meal covers only direct ingredient and packaging expenses. Labor gets factored separately into your total selling price through your desired profit margin.
How often should I recalculate my cost prices?
Monthly at minimum, more frequently during significant ingredient price swings. Seasonal ingredients like vegetables might need weekly recalculation to maintain profitability.
What is a normal food cost for corporate catering?
Corporate catering typically runs 35-45% food cost, higher than restaurants due to lower margins and increased competition. Large volumes can sometimes push below 35%.
How do I factor in loss and spillage?
Add standard 10-15% to total ingredient costs for cutting loss and spillage. Fresh products can reach 20%. Measure actual loss regularly to adjust this percentage accurately.
Should I include VAT in my cost price calculation?
Never calculate cost price with VAT included. Add VAT only to the final customer price. Food service applies 9% VAT to food and non-alcoholic beverages.
How do I handle recipe scaling for different batch sizes?
Scale ingredients proportionally, but fixed costs like packaging stay constant per portion. Larger batches often reduce per-portion costs due to cooking efficiencies and reduced spillage percentages.
📚 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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