Think of food scraps like raw diamonds buried in the rough. They seem worthless at first glance, but with skill and effort, they transform into something valuable. Your scrap dishes aren't free — they carry real costs that need proper calculation.
Why scrap dishes aren't free
Many chefs assume: "Those vegetables would get tossed anyway, so this dish costs zero." But that's not accurate. You're investing time, energy, and usually additional ingredients to transform scraps into something exceptional.
⚠️ Note:
Scraps aren't free. They already cost you money during the original purchase. Now you're preventing waste, but costs remain involved.
What you include in scrap dishes
For an accurate margin calculation, you add up these expenses:
- Scrap value: What did you originally pay for those scraps?
- Extra ingredients: Oil, spices, sauces to make it delicious
- Labor time: Cutting, preparing, plating requires time
- Energy costs: Gas, electricity for preparation
💡 Example:
You create soup from vegetable scraps and leftover meat:
- Vegetable scraps: €2.50 (original purchase value)
- Meat snippets: €3.00
- Broth, spices: €1.20
- Labor (30 min at €15/hour): €7.50
- Gas/electricity: €0.80
Total cost: €15.00 for 6 portions = €2.50 per portion
Determining scrap value
The scrap value equals what you originally paid for those ingredients, but proportional to what you're using.
💡 Example:
You purchased 2 kg of carrots for €3.00. 500 grams remain:
- Original price: €3.00 per 2 kg = €1.50 per kg
- Scrap value: 0.5 kg × €1.50 = €0.75
You count that €0.75 as a cost, not €0.
Including labor time
Processing scraps often demands more time than regular preparation. After managing kitchen operations for nearly a decade, I've seen how creativity, precise cutting, and ingredient combining add significant minutes to each dish.
- Guideline: Calculate €12-18 per hour for kitchen labor
- Time estimate: Measure several times how long it actually takes
- Efficiency: The more routine, the faster it becomes
The margin calculation
Once you've gathered all costs, you calculate margin like any other dish:
Formula: Margin % = ((Selling price excl. VAT - Cost price) / Selling price excl. VAT) × 100
💡 Example:
You sell leftover risotto for €16.50 (incl. 9% VAT):
- Selling price excl. VAT: €16.50 / 1.09 = €15.14
- Cost price: €4.20 (scraps + extra ingredients + labor)
- Profit: €15.14 - €4.20 = €10.94
Margin: (€10.94 / €15.14) × 100 = 72.3%
Why this matters
Scrap dishes can become your most profitable offerings, provided you price them correctly. They prevent waste and can deliver exceptional margins.
- Guests appreciate creativity and sustainability
- You can charge premium prices for "chef's special"
- Lower food cost through smart scrap processing
⚠️ Note:
Don't calculate everything at purchase price. If you throw scraps away, it's a loss. If you process them, you prevent loss and generate profit.
How do you calculate the margin on scrap dishes?
Determine the scrap value
Calculate what you originally paid for the scraps. Divide the purchase price by the total weight and multiply by the weight of scraps you use.
Add up all extra costs
Include: extra ingredients (spices, oil, sauces), labor time (hours × €15), energy costs for preparation. This gives you the total cost per dish.
Calculate the margin
Subtract the cost price from your selling price excl. VAT. Divide the difference by the selling price and multiply by 100 for the margin percentage.
✨ Pro tip
Track your scrap processing costs for exactly 14 days, noting every minute spent and ingredient added. You'll discover which scraps deliver the highest margins and can focus your creative energy there.
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
Should I calculate scraps at the full purchase price?
Yes, because you already paid for them. By processing them, you prevent loss and create extra value. So include the original purchase value in your calculation.
How do I estimate the labor time for processing scraps?
Measure several times how long it takes to turn scraps into a dish. Calculate on average €12-18 per hour for kitchen labor, depending on your wage costs.
Can I sell scrap dishes at a higher price than regular dishes?
Often yes. Guests appreciate creativity and sustainability. Position it as a 'chef's special' or 'zero waste creation' and charge a premium price for the creativity.
What if the scraps would be thrown away anyway?
Then you prevent loss and make profit. The scraps cost you nothing extra, but you do invest time and extra ingredients to make something great from them.
How do I track which scraps I use daily?
Note daily what scraps you process and how many dishes you make from them. This gives you insight into your real costs and margins per scrap dish.
Should I include overhead costs like rent and utilities?
For precise calculations, add a small percentage of your overhead costs. Most restaurants allocate 5-8% of total overhead to each dish based on kitchen time used.
What's the minimum margin I should target for scrap dishes?
Aim for at least 65% margin on scrap dishes since labor costs are typically higher. This ensures profitability even with the extra processing time required.
📚 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.
Food cost calculation for every type of kitchen
Sushi, pizzeria, steakhouse or vegan concept — every kitchen type has its own challenges. KitchenNmbrs adapts to your concept. Try it free for 14 days.
Start free trial →