Ever wonder if your €12.50 daily menu actually makes money? Many Dutch eateries treat daily menus as loss leaders, unknowingly bleeding cash with every plate served. You'll discover exactly how to calculate your true margin and turn your daily specials into profit drivers.
What is margin and why is it important for daily menus?
Margin is the difference between your selling price and all your costs. For a daily menu, this means: what's left over after deducting ingredients, energy, and labor? Many eateries think that a full restaurant from cheap daily menus automatically generates profit. That's only true if your margin is positive.
⚠️ Watch out:
A daily menu for €12.50 with €9.00 in costs seems okay. But if you add labor (€3.50 per plate), you're not making anything. Then you're attracting customers who spend little and bring in little revenue.
First, calculate your food cost percentage
Start with the ingredients in your daily menu. Add up literally everything that goes on the plate: main course, side dishes, sauce, garnish, and bread.
💡 Example daily menu:
Schnitzel with fries and salad for €14.50 (incl. 9% VAT)
- Schnitzel: €2.10
- Fries (250g): €0.85
- Salad with dressing: €1.20
- Bread roll: €0.35
- Butter: €0.15
Total ingredients: €4.65
Now calculate your food cost percentage with this formula:
Food cost % = (Ingredient costs / Selling price excl. VAT) × 100
In the example: €14.50 / 1.09 = €13.30 excl. VAT
Food cost: (€4.65 / €13.30) × 100 = 35.0%
Add labor cost per plate
Daily menus take time: taking orders, preparing, serving, and clearing. Budget 8-12 minutes per plate, depending on your concept.
💡 Labor cost calculation:
Average wage cost: €18.00 per hour (incl. employer contributions)
- 10 minutes per plate = 1/6 hour
- €18.00 / 6 = €3.00 labor per plate
Total direct costs: €4.65 + €3.00 = €7.65
Factor in other costs
Besides ingredients and labor, you have fixed costs: rent, energy, insurance, and depreciation. For daily menus, you typically budget 15-20% of revenue for other costs.
- Energy costs: €0.50-€1.00 per plate (cooking, keeping warm, washing)
- Fixed costs: 15-20% of revenue (€2.00-€2.65 at €13.30 excl. VAT)
- Other: dishes, cutlery, napkins (€0.25 per plate)
💡 Total cost price daily menu:
- Ingredients: €4.65
- Labor: €3.00
- Energy: €0.75
- Fixed costs: €2.30
- Other: €0.25
Total: €10.95 per plate
Calculate your net margin
Now you can calculate your actual margin:
Net margin = Selling price excl. VAT - Total costs
In the example: €13.30 - €10.95 = €2.35 net margin per plate
As a percentage: (€2.35 / €13.30) × 100 = 17.7% net margin
⚠️ Watch out:
A net margin below 15% is risky. During rush periods, you'll hit capacity limits without earning more. At 20%+ margin, you can grow and invest.
Typical margins for Dutch eateries
Daily menus in Dutch eateries often have lower margins than à la carte dishes. That makes sense: you offer value for money and attract customers who might also drink something.
- Lunch daily menus: 15-25% net margin
- Dinner daily menus: 18-28% net margin
- À la carte: 25-35% net margin
After managing kitchen operations for nearly a decade, I've seen how daily menus can have lower margin if guests also drink. A beer or glass of wine has 60-70% margin and compensates for the lower food margin.
Adjusting your price structure
If your net margin comes in below 15%, you've got three options:
- Raise the price: €1.00 extra gives €0.92 extra margin (after VAT)
- Reduce portions: 20 grams less meat saves €0.80 per plate
- Use cheaper ingredients: chicken instead of beef, seasonal vegetables
💡 Practical example:
Raising daily menu from €14.50 to €15.50:
- Extra revenue: €1.00 per plate
- Extra margin: €0.92 (after 9% VAT)
- At 50 daily menus per week: €2,392 extra per year
How do you calculate the margin on a daily menu? (step by step)
Gather all ingredient costs
Add up all costs: main course, side dishes, sauce, garnish, and bread. Don't forget butter, oil, or seasonings. Calculate per portion as you actually serve it.
Calculate labor and other costs
Budget 8-12 minutes labor per plate at €18/hour (incl. contributions). Add energy (€0.50-€1.00), fixed costs (15-20% of revenue), and other costs (€0.25).
Subtract all costs from selling price excl. VAT
Divide menu price by 1.09 for price excl. VAT. Subtract total costs. The result is your net margin. Aim for at least 15%, preferably 20%+ for healthy growth.
✨ Pro tip
Track your top 2 daily specials every 3 weeks to spot margin drift early. Small ingredient price increases can silently kill your profitability without you noticing.
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 is a good margin for a daily menu in an eatery?
A net margin of 15-25% is standard for daily menus. Lower than 15% is risky, above 20% gives room to grow and invest.
Should I include VAT in my margin calculation?
No, always calculate excl. VAT. You'll pass VAT on to the tax authority, so it's not real revenue for you. Divide your menu price by 1.09 for the price excl. VAT.
How much labor time should I budget per daily menu?
Budget 8-12 minutes per plate for taking orders, preparing, serving, and clearing. For more complex dishes, this can go up to 15 minutes.
Can a daily menu have lower margin than à la carte?
Yes, that's normal. Daily menus attract customers who also drink. A beer or glass of wine has 60-70% margin and compensates for the lower food margin.
📚 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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