I'll be honest - I used to calculate employee meal costs the same way as restaurant dishes. Big mistake. Meal subscriptions involve fixed volumes, extended contracts, and employer subsidies that completely change your math. The fundamentals stay the same, but the variables are entirely different.
What makes meal subscriptions different?
Meal subscriptions operate on predictable volumes and locked-in prices. This creates advantages, but also unique challenges:
- Fixed daily/weekly intake
- Longer contract periods (3-12 months)
- Employer contribution affects your selling price
- Less flexibility in menu pricing
The basic formula for meal subscriptions
Your food cost calculation stays consistent, but you'll have more certainty about volumes:
Food cost % = (Ingredient costs per meal / Selling price excl. VAT) × 100
💡 Example:
Meal subscription for 50 employees, 5 days per week:
- Ingredient costs per meal: €4.20
- Selling price per meal: €12.50 (incl. 9% VAT)
- Selling price excl. VAT: €12.50 / 1.09 = €11.47
Food cost: (€4.20 / €11.47) × 100 = 36.6%
Including employer contribution
Most employers cover part of each meal. This directly impacts your calculation:
- Employee pays: €5.00
- Employer pays: €7.50
- Total selling price: €12.50
For your food cost you calculate with the total selling price, not just what the employee pays.
⚠️ Note:
Always calculate with the full selling price (employee + employer). The employer contribution is part of your revenue.
Calculating volume advantages
Large volumes deliver purchasing advantages. Factor this into your cost price:
💡 Example volume advantage:
Chicken fillet at different volumes:
- Small restaurant (20 kg/week): €8.50/kg
- Corporate catering (100 kg/week): €7.20/kg
- Savings: €1.30/kg = 15.3%
At 150 grams chicken per meal: €0.20 less cost per portion
Contract period and price stability
Extended contracts create price risk if ingredient costs spike. After managing kitchen operations for nearly a decade, I've learned to build in protection:
- Indexation clause (e.g. 2% per year)
- Review for major price increases (>10%)
- Buffer in your food cost (32% instead of 35%)
Specific cost items for subscriptions
Beyond ingredients you'll have additional costs:
- Packaging: €0.15-0.30 per meal
- Delivery: €0.50-1.00 per meal
- Administration: invoicing, subscription management
💡 Complete cost price example:
Meal subscription all costs:
- Ingredients: €4.20
- Packaging: €0.25
- Delivery: €0.75
- Total costs: €5.20
At €11.47 excl. VAT = 45.3% total cost price
Seasonal menus and variety
Plan your menus ahead and calculate average food cost over a month:
- Week 1: Summer vegetables (cheap) - 28% food cost
- Week 2: Fish menu (expensive) - 38% food cost
- Week 3: Vegetarian (cheap) - 25% food cost
- Week 4: Meat menu (average) - 33% food cost
Average monthly food cost: 31%
How do you calculate the food cost of a meal subscription?
Determine your total selling price
Add the employee and employer contribution together. Convert this to excl. VAT (divide by 1.09). This is your actual selling price per meal.
Calculate all costs per meal
Add ingredients, packaging and delivery. Don't forget to factor in volume discounts in your purchasing. This gives you the total cost price per meal.
Calculate food cost percentage
Divide your total costs by your selling price excl. VAT and multiply by 100. For meal subscriptions 35-45% is normal due to extra costs.
Plan for contract period
Calculate your average food cost over a month with different menus. Build in 2-3% buffer for price increases during the contract.
✨ Pro tip
Calculate your 6-week menu rotation costs upfront and lock in supplier prices for that period. This prevents seasonal price spikes from destroying your 35% target margin.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
Was this article helpful?
Frequently asked questions
Why is food cost higher for subscriptions than in restaurants?
You're dealing with extra costs like packaging (€0.15-0.30) and delivery (€0.50-1.00) per meal. Plus you have less flexibility to adjust prices during the contract period.
How do I factor volume discounts into my cost price?
Request quotes from suppliers for your expected monthly volume. Large volumes can be 10-20% cheaper than small restaurant orders, which directly reduces your per-portion costs.
Do I need to include VAT if the employer pays?
Yes, employer contributions are also VAT-taxable revenue. Always calculate with the total selling price excl. VAT for your food cost calculation.
What if ingredient prices rise during the contract?
Build an indexation clause into your contract (e.g. 2% per year) or a review for major price increases. Also plan 2-3% buffer in your initial food cost to absorb fluctuations.
📚 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.
Food cost control for large-scale kitchens
In school cafeterias and healthcare catering, budgets are tight. KitchenNmbrs calculates costs per meal at large volumes so you stay within budget. Try it free.
Start free trial →