Over 60% of restaurants lose money on their menu deals because they skip proper cost calculations. Most create attractive offers without knowing their true expenses. You end up with a packed dining room but shrinking profits.
First, calculate your total cost price
A profitable menu deal requires knowing what all components cost together. Don't just count the main course ingredients - include appetizers, side dishes, drinks, and every item that's part of the package.
💡 Example:
3-course menu deal:
- Appetizer (soup): €2.20
- Main course (chicken): €7.80
- Dessert (tiramisu): €3.10
- Bread and butter: €0.90
Total cost price: €14.00
Pay extra attention to the 'hidden' costs that slip through: bread, butter, olive oil, garnish, and included beverages. These extras can easily add €2-3 per person - something most kitchen managers discover too late after running deals for months.
Determine your desired food cost percentage
Menu deals can handle slightly higher food costs than individual dishes. You're attracting more customers who typically order extra drinks. A food cost of 35-40% can work if executed properly.
⚠️ Attention:
Never exceed 45% food cost, even for deals. You won't have enough left to cover staff, rent, and energy costs.
Calculate the minimum selling price
Once you know your total cost price and desired food cost percentage, you can determine your minimum charge. Use this formula:
Minimum price excl. VAT = Total cost price ÷ (Food cost percentage ÷ 100)
💡 Example calculation:
Cost price: €14.00 | Desired food cost: 38%
- Minimum price excl. VAT: €14.00 ÷ 0.38 = €36.84
- Price incl. 9% VAT: €36.84 × 1.09 = €40.16
Minimum deal price: €40.20 (rounded)
Check against your normal menu price
Your deal must offer genuine savings. Calculate what the same dishes cost individually and ensure your deal is at least 15-20% cheaper. Otherwise, customers won't see real value.
- Appetizer individually: €8.50
- Main course individually: €24.50
- Dessert individually: €7.50
- Total individually: €40.50
Here, a deal price of €32.50 feels attractive (20% discount) while maintaining profitability at 38% food cost.
Account for seasons and purchasing
Ingredient prices fluctuate with seasons. Review your deal pricing every 3 months and adjust when necessary. Fresh products like fish, vegetables, and fruit can quickly erode your margins through price swings.
💡 Practical tip:
Build deals around year-round stable ingredients. Choose chicken, pasta, rice, and frozen vegetables over seasonal fresh products.
Systems like KitchenNmbrs automatically track cost prices and show your minimum deal price, even when supplier prices change.
How do you calculate the minimum price for a profitable menu deal?
Add up all cost prices
Make a list of all dishes and drinks that are part of the deal. Calculate the cost price of each component including garnishes, bread, butter, and other additional costs. Add everything up for the total cost price per person.
Determine your maximum food cost percentage
Choose a food cost percentage between 35-40% for your deal. Higher than 40% becomes risky, lower than 35% makes your deal less attractive to guests. Account for extra drink sales that deals often generate.
Calculate the minimum selling price
Divide your total cost price by your desired food cost percentage. Multiply by 1.09 for VAT. This is your minimum deal price to remain profitable. Check that this gives at least 15-20% discount compared to individual dishes.
✨ Pro tip
Test your deal pricing over exactly 6 weeks before committing long-term. Track both food costs and total revenue per table to ensure the lower margins don't hurt overall profitability.
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
Can I accept a higher food cost for a menu deal?
Yes, up to 40-45% can still work profitably. Deals attract more guests who typically order additional drinks, compensating for lower food margins. But never exceed 45% - you won't cover operating expenses.
What if my calculated price seems too high for a deal?
Adjust your menu with cheaper ingredients or smaller portions. Replace expensive items with similar-tasting alternatives. A €25 deal with 35% food cost beats a €40 deal with 45% food cost every time.
How do I know if my deal offers real value?
Your deal should cost at least 15-20% less than ordering the same dishes individually. Calculate what guests normally pay and compare. Anything less than 15% savings doesn't feel like a genuine deal to customers.
📚 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.
Purchase smarter with real-time insights
Seasonal prices fluctuate — so do your recipe costs. KitchenNmbrs automatically recalculates your margins when purchase prices change. Never get surprised again. Start free.
Start free trial →