Many restaurant owners think food cost apps are just another expense eating into their already thin margins. But calculating the return on investment (ROI) reveals whether these tools actually pay for themselves. Here's how to crunch the numbers with real figures.
What is ROI and why does it matter?
Return on Investment (ROI) shows how much you get back for every euro you invest. For a food cost app, you're comparing monthly subscription costs against the actual savings you realize through better number control.
💡 Example:
Restaurant with €40,000 monthly revenue:
- App costs: €35/month
- Food cost savings: 2 percentage points (from 33% to 31%)
- Monthly savings: €40,000 × 0.02 = €800
ROI: €800 / €35 = 2,286% per month
Costs of a food cost app
The costs are usually transparent and predictable:
- Tools like KitchenNmbrs: €24.99 - €49.99 per month (depending on features)
- Apicbase: from €300+ per month
- Other tools: €50 - €200 per month
Note: some tools charge per user or per location. Check this beforehand.
Where do you save money?
A solid food cost app helps you save money in several ways:
1. Lower food cost through better control
The biggest advantage: you see where your money's bleeding and can adjust course quickly.
💡 Example:
Bistro with €25,000 monthly revenue:
- Food cost before app: 35%
- Food cost after optimization: 31%
- Difference: 4 percentage points
Monthly savings: €25,000 × 0.04 = €1,000
2. Less waste through better planning
With insight into your recipes and portions, you buy more precisely. From analyzing actual purchasing data across different restaurant types, common waste ranges from 5-15% of purchases.
- At €8,000 monthly purchases and 10% waste = €800 loss
- Cut this in half through better planning = €400 savings per month
3. Save time on administration
Manual cost price calculations eat up valuable time. An app does this automatically.
💡 Example:
Time savings per week:
- Calculating cost prices: 3 hours saved
- HACCP administration: 2 hours saved
- Total: 5 hours × €25/hour = €125 per week
Monthly savings: €125 × 4.3 = €538
ROI calculation formula
The basic formula for ROI is:
ROI % = ((Total savings - App costs) / App costs) × 100
For a monthly ROI you calculate:
- Total monthly savings: Food cost + Waste + Time
- App costs per month: Subscription + any setup fees
⚠️ Note:
Calculate conservatively. You won't realize all savings immediately. Start with 50% of your estimated savings to avoid disappointment.
Realistic expectations by revenue class
ROI varies depending on the size of your business:
Small business (€15,000 - €25,000 monthly revenue)
- Food cost savings: 1-2 percentage points = €150-500/month
- App costs: €25-35/month
- ROI: 400-1,400% per month
Medium business (€25,000 - €50,000 monthly revenue)
- Food cost savings: 1-3 percentage points = €250-1,500/month
- App costs: €35-50/month
- ROI: 500-2,900% per month
Large business (€50,000+ monthly revenue)
- Food cost savings: 1-2 percentage points = €500-1,000/month
- App costs: €50-100/month
- ROI: 400-1,900% per month
Calculate break-even point
When do you earn back the app investment? That depends on your savings:
💡 Break-even example:
App costs €35/month, you save €280/month:
- Break-even: €35 / €280 = 0.125 month
- That's approximately 4 days
After 4 days you're making money with the app
For most restaurants, the break-even point is between 1 week and 1 month. If it takes longer, the app's probably too expensive for your situation.
What if the ROI disappoints?
Not every app works for every business. Signs that ROI is disappointing:
- Your food cost doesn't drop after 2 months of use
- It costs more time than it saves
- Your team doesn't use the app
In that case: stop using the app and try a different approach. Most apps have a 1-month cancellation period.
Compare yourself?
Try KitchenNmbrs free for 7 days
Discover why hospitality entrepreneurs choose KitchenNmbrs. No credit card required.
Start free trial →How do you calculate the ROI of a food cost app? (step by step)
Measure your current food cost percentage
Calculate your average food cost over the last 3 months. Add up all ingredient costs and divide by your total revenue (excl. VAT). This is your baseline.
Estimate your potential savings
Look at where you're losing money: oversized portions, waste, unclear recipes. Conservatively estimate how much you can save on this (usually 1-3 percentage points food cost).
Calculate the monthly ROI
Multiply your monthly revenue by your estimated savings in percentage points. Divide this by the monthly app costs and multiply by 100 for your ROI percentage.
✨ Pro tip
Track your exact food cost percentage for 30 days before implementing any app, then measure again after 60 days of consistent use. This gives you concrete ROI data rather than estimates.
Was this article helpful?
Frequently asked questions
How long does it take to see results from a food cost app?
You'll see the first insights within 1-2 weeks. You usually realize real savings after 1-2 months, once you're comfortable with the system and have adjusted your processes.
What if my food cost is already good, does an app still make sense?
If your food cost is below 30% and stable, an app mainly delivers time savings and peace of mind. The ROI then comes primarily from automating administration and HACCP registration.
Can I use the ROI calculation to compare different apps?
Yes, calculate the ROI for each app you're considering. But pay attention to differences in functionality - a more expensive app can deliver greater savings through better features.
What if I don't have historical data to calculate my current food cost?
Then estimate your food cost by tracking all purchases and sales for one week. Divide the ingredient costs by your revenue (excl. VAT) for a rough indication.
Should I include setup costs in the ROI calculation?
For most food cost apps there aren't setup costs - you can start immediately. If there are costs, divide them over the first 12 months for a fair comparison.
How do I track ROI for seasonal restaurants with fluctuating revenue?
Calculate ROI based on your average monthly revenue over a full season. Focus on percentage improvements rather than absolute euro amounts, as these scale with your revenue 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.
Try KitchenNmbrs alongside your current tool
Not satisfied with your current software? KitchenNmbrs offers a free 14-day trial — no credit card required, no commitments. Compare for yourself.
Start free trial →