Running a bakery with restaurant deliveries means juggling two distinct profit margins. Your direct consumer sales operate on different economics than wholesale deliveries. Each channel requires its own margin calculation since costs and pricing structures vary significantly.
Calculating two different margins
You're essentially running two businesses under one roof. The margin on bread sold to walk-in customers differs dramatically from what you'll earn delivering to restaurants.
? Example:
White bread - cost price €0.85 per loaf
- Shop: €2.50 (margin 66%)
- Restaurant: €1.40 (margin 39%)
Both can be profitable due to different cost structures.
Cost price calculation for bakery products
Your true cost goes beyond flour and yeast. For accurate margins, you need to capture everything:
- Ingredients: flour, yeast, salt, butter, etc.
- Energy: oven, cooling, lighting
- Labor: baking, packaging, delivery
- Packaging: bags, stickers, crates
? Cost price white bread:
- Ingredients: €0.45
- Energy (oven): €0.15
- Labor: €0.20
- Packaging: €0.05
Total cost price: €0.85
Calculating margin per sales channel
The margin formula remains constant, but selling prices shift dramatically between channels:
Margin % = ((Selling price - Cost price) / Selling price) × 100
Shop sales (retail)
- Higher selling price possible
- More service and presentation
- Typical margin: 60-70%
Restaurant deliveries (wholesale)
- Lower selling price, but higher volume
- Less packaging and service
- Typical margin: 35-45%
⚠️ Note:
Always calculate excluding VAT. Bread has 9% VAT. A loaf of €2.50 incl. VAT = €2.29 excl. VAT for your margin calculation.
Volume impact on profitability
Restaurant deliveries offer lower margins but can generate higher total profits through volume and predictable orders:
? Comparison:
50 loaves shop sales vs. 200 loaves restaurant:
- Shop: 50 × €1.65 profit = €82.50
- Restaurant: 200 × €0.55 profit = €110.00
Lower margin, but more total profit through volume.
Different cost structures
From analyzing actual purchasing data across different restaurant types, your costs per loaf shift depending on which channel you're serving:
Shop sales additional costs:
- Shop staff and service
- Display and presentation
- Individual packaging
- Extended opening hours
Restaurant delivery additional costs:
- Delivery (fuel, time)
- Crates and transport packaging
- Early production (4-6 AM)
- Credit risk (restaurants often pay later)
Including seasonal fluctuations
Restaurant deliveries fluctuate seasonally. Calculate margins using average volumes, not your busiest weeks:
- Summer: fewer deliveries (restaurants buy less bread)
- Winter: more deliveries (comfort food, soups)
- Holidays: special products with different margins
How do you calculate the margin on a bakery with restaurant deliveries?
Calculate your complete cost price per product
Add up all costs: ingredients, energy for baking, labor, packaging. Don't forget the energy for your oven - that's often 15-20% of your cost price.
Split your selling prices per channel
Make a distinction between shop price and restaurant delivery price. Always calculate excluding 9% VAT for your margin calculation.
Calculate margin per channel separately
Use the formula: ((Selling price - Cost price) / Selling price) × 100. Shop sales have higher margin, deliveries have higher volume.
Analyze total profitability
Multiply margin per loaf by number of loaves sold per channel. Sometimes a lower margin generates more total profit through volume.
✨ Pro tip
Track each restaurant's monthly order volume against their payment speed over 90-day cycles. Customers ordering 500+ loaves monthly but paying 45+ days late can strain cash flow despite healthy margins.
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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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
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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