How to cost a slice
Start with the whole cake. If you buy it in, that's the invoice price. If you bake it, add up the ingredients: flour, butter, sugar, eggs, and the expensive bits like nuts and chocolate. Divide by the slices you actually cut, not the slices the supplier says.
A £16 carrot cake cut into 14 is £1.14 a slice. Cut into 12, it's £1.33. Two fewer slices per cake can cost you more GP than a price rise brings back, so agree a slice size with your team and stick to it.
Count the slices you throw away
The slices left at close still had to be paid for, so they come out of the ones you sell. If 1 in 10 slices goes in the bin, every slice you sell costs about 11% more. On the carrot cake that's 13p a slice.
That's why the cake on the counter at 4pm matters. Fewer whole cakes on slow days, or a late-afternoon offer, often does more for GP than the menu price.
Eat-in and takeaway are taxed differently
If you're VAT registered, a cold slice taken away carries no VAT, but eaten at a table it carries 20%. A £3.50 slice gives you £3.50 to take away and £2.92 eaten in. The calculator blends the two using your eat-in share. Our VAT guide has the detail.
Bought in or baked here
Bought-in cakes already carry the baker's margin, so 60 to 70% GP is a fair aim. Bakes made in-house usually make more, because there's no baker's margin in them, but they take staff time that this sum leaves out. Our guide to a good GP for a cafe has the ranges, and the recipe costing template costs a bake ingredient by ingredient.