Corporate meal prep margins work differently than restaurants - you price per person, not per plate. Factor in packaging, transport, and volume economics. Learn the step-by-step calculation for profitable corporate catering margins.
The basics: calculating cost price per person
Corporate meal prep operates on a per-person model, not per-plate like traditional restaurants. Your fundamental unit becomes cost price per person per meal. And you've got additional expense categories that don't exist in restaurant operations.
💡 Example: Lunch for 50 people
You deliver 50 lunch boxes to an office:
- Ingredients: €4.20 per person
- Packaging: €0.80 per person
- Transport: €0.40 per person (€20 / 50 people)
- Prep labor: €1.60 per person
Total cost price: €7.00 per person
Including packaging costs
This element becomes critical with meal prep operations. Every single meal requires a container, lid, and often cutlery plus napkins. These expenses far exceed what you'd spend on plates in a traditional restaurant setting.
- Basic lunch box: €0.40 - €0.70 per unit
- Biodegradable: €0.60 - €1.20 per unit
- Cutlery and napkins: €0.10 - €0.20 per person
- Carry bags: €0.05 - €0.15 per person
⚠️ Attention:
Packaging expenses can consume 10-15% of your total cost structure. Skip this calculation and you'll hemorrhage money on every single order.
Calculating transport and logistics
Delivery becomes mandatory for your meal service. Spread these expenses across your per-delivery headcount. Larger orders mean lower per-person transport costs - it's simple math.
💡 Transport calculation:
Delivery runs you €25 (fuel + driver time):
- For 25 people: €1.00 per person
- For 50 people: €0.50 per person
- For 100 people: €0.25 per person
Large orders generate significantly higher profitability.
Calculating margin with the right formula
Now you can determine your actual margin. The formula mirrors restaurant calculations, but applies per-person metrics:
Margin % = ((Selling price per person - Cost price per person) / Selling price per person) × 100
Important: calculate using prices excluding VAT (9% for food products).
💡 Complete calculation:
You charge €12.50 per person (incl. 9% VAT):
- Selling price excl. VAT: €12.50 / 1.09 = €11.47
- Cost price per person: €7.00
- Profit per person: €11.47 - €7.00 = €4.47
Margin: (€4.47 / €11.47) × 100 = 39%
Standard margins for corporate catering
Based on real restaurant P&L data, meal prep services typically achieve different margin ranges than traditional restaurants. You'll have reduced overhead (no waitstaff, no prime real estate), but elevated packaging and delivery expenses.
- Basic meal prep: 35-45% margin
- Premium/organic: 40-50% margin
- Volume contracts: 30-40% margin (reduced pricing, guaranteed volume)
- Small orders (<20 people): 25-35% margin (transport costs hurt profitability)
What else you need to include
Several additional cost factors deserve attention in your margin calculations:
- Minimum order sizes: Under 20 people, transport becomes proportionally expensive
- Shelf life loss: Meal prep products have shorter lifespans than fresh preparation
- Return packaging: If you operate with reusable container systems
- Seasonal fluctuations: Ingredient costs shift throughout the year
⚠️ Attention:
Refresh your cost calculations monthly. Supplier price increases happen regularly, and packaging material costs can swing dramatically.
How do you calculate the margin on meal prep? (step by step)
Gather all cost prices per person
Add up: ingredients + packaging + transport + prep labor. Divide transport by the number of people per delivery. Don't forget any cost item.
Calculate your selling price excluding VAT
Divide your menu price by 1.09 to go from including to excluding VAT. Food is subject to 9% VAT, so €12.50 becomes €11.47 excl. VAT.
Apply the margin formula
Margin % = ((Selling price excl. VAT - Cost price) / Selling price excl. VAT) × 100. Check if you come out between 35-45% for a healthy margin.
✨ Pro tip
Track your margin breakdown by order size over 90 days. Orders under 15 people typically lose money due to transport costs exceeding €1.50 per person.
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
What margin is normal for meal prep services?
Healthy margins typically range between 35-45%. Premium services can hit 40-50%, but volume contracts often settle around 30-40% due to discounted per-person pricing.
Should I include VAT in my margin calculation?
Never include VAT in margin calculations. Food carries 9% VAT in most regions. Divide your menu price by 1.09 to get the VAT-excluded price for accurate calculations.
How do I calculate transport costs per person?
Divide total transport expenses by delivery headcount. With €25 transport costs and 50 people, you're paying €0.50 per person for delivery.
Why are small orders less profitable?
Transport and fixed costs (time, fuel, driver wages) remain constant but get spread across fewer people. Large orders dramatically improve per-person profitability.
How much does packaging cost on average per person?
Including container, lid, and cutlery, expect €0.60 to €1.20 per person. Sustainable packaging costs more but can justify premium pricing with environmentally conscious clients.
How do I price multi-day corporate contracts differently?
Multi-day contracts reduce daily setup costs and guarantee volume, allowing 5-10% lower margins. Factor in ingredient price locks and reduced sales effort when pricing these agreements.
📚 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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