A snack combination seems simple, but calculating the margin is trickier than you think. Many snack bars forget to include costs like frying oil, gas and packaging. In this article you'll learn step-by-step how to calculate the real margin on fries, frikandel and sauce.
Gather all costs for your snack combination
For a reliable margin calculation, you need to include all costs. Not just the fries and frikandel, but also the hidden costs that many snack bars overlook.
💡 Example: Special fries (large)
Selling price: €4.50 incl. 9% VAT
- Potatoes (400g): €0.45
- Frikandel: €0.85
- Mayonnaise (2 sachets): €0.15
- Frying oil (per portion): €0.12
- Packaging (container + sachets): €0.18
- Gas/electricity: €0.08
Total costs: €1.83
Calculate your selling price excluding VAT
Snack bars often work with the price including VAT, but for a correct margin calculation you need the price excluding VAT. Food is subject to 9% VAT.
Formula: Selling price excl. VAT = Selling price incl. VAT ÷ 1.09
💡 Example calculation:
€4.50 ÷ 1.09 = €4.13 excl. VAT
Calculate your gross margin
The gross margin is the amount left after deducting all direct costs. This is the money you need to cover your fixed costs (rent, staff, insurance).
Formula: Gross margin = Selling price excl. VAT - Total costs
💡 Example calculation:
- Selling price excl. VAT: €4.13
- Total costs: €1.83
- Gross margin: €4.13 - €1.83 = €2.30
Calculate your margin percentage
The margin percentage shows what percentage of your selling price remains as profit. This helps you compare different products.
Formula: Margin % = (Gross margin ÷ Selling price excl. VAT) × 100
💡 Example calculation:
(€2.30 ÷ €4.13) × 100 = 55.7%
This is a healthy margin for a snack bar. Standard margins range between 50-65%.
⚠️ Note:
Don't forget to include frying oil and energy costs. These hidden costs can reduce your margin by 5-10%.
Check your food cost percentage
In addition to margin, you can also look at your food cost percentage. This shows what percentage of your revenue goes to ingredients.
Formula: Food cost % = (Ingredient costs ÷ Selling price excl. VAT) × 100
- For snack bars, 25-35% food cost is standard
- With combinations this is often higher due to added value
- Sauces have low costs but enhance the experience
Compare different combinations
By calculating all combinations, you'll discover which ones are most profitable. Often the most expensive combinations aren't necessarily the most profitable.
💡 Comparison of popular combinations:
- Fries + frikandel: 58% margin
- Fries + croquette: 62% margin
- Fries + chicken schnitzel: 45% margin
The croquette combination yields more than the more expensive chicken schnitzel.
⚠️ Note:
Update your calculations regularly. Suppliers raise prices, but many snack bars don't adjust their menu in time.
How do you calculate the margin on a snack combination? (step by step)
Make a list of all costs
Write down the costs of fries, meat, sauce, frying oil, packaging and energy per portion. Don't forget any cost item, not even the small amounts.
Calculate your selling price excluding VAT
Divide your menu price by 1.09 to get the price excluding 9% VAT. This is the basis for your margin calculation.
Subtract all costs from your selling price
Selling price excl. VAT minus total costs gives you gross margin in euros. Divide this by your selling price and multiply by 100 for the percentage.
✨ Pro tip
Check which combinations you sell the most and focus your margin calculation there. If 80% of your revenue comes from 5 combinations, you don't need to calculate all 50 variations.
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
Should I include frying oil in the cost price?
Yes, frying oil is a direct cost item. Calculate approximately €0.10-0.15 per portion of fries, depending on how much frying oil you use and how often you change it.
How often should I check my margins?
Check your margins monthly and always after supplier price changes. Energy prices can also fluctuate significantly and affect your margin.
What is a healthy margin for a snack bar?
For snack combinations, 50-65% gross margin is standard. Individual products like fries often have higher margins, meat and fish have lower margins.
Why do I calculate with price excluding VAT?
VAT is money you pass on to the tax authorities. For your own profit, you only count the amount excluding VAT. Otherwise your margin appears higher than it actually is.
How do I calculate energy costs per portion?
Estimate your daily energy costs for frying and divide by the number of fries portions. This often comes down to €0.05-0.10 per portion, depending on your equipment.
📚 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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