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Basic knowledge and formulas

Learn the fundamental formulas and calculation methods for hospitality.

What is food cost in a restaurant?

Most restaurant owners think they know their food costs, but they're quietly bleeding money on every plate. You might estimate that pasta dish costs around €5 t...

⏱️ 2 min read 👁️ 1,811 📅 21 Feb 2026
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What is prime cost for a restaurant?

Most restaurants track food costs religiously but miss the bigger picture. Prime cost combines your food expense with labor cost to show exactly how much revenu...

⏱️ 4 min read 👁️ 675 📅 21 Feb 2026
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How do I calculate food cost when there's waste in the...

Kitchen waste costs restaurants far more than most owners realize. A kilo of onions might cost €2, but after peeling you're left with just 900 grams - meaning y...

⏱️ 2 min read 👁️ 549 📅 21 Feb 2026
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What are typical margins on coffee and tea?

Most restaurants struggle with 20-30% food margins while their coffee machine quietly generates 80-90% profit per cup. The difference between operators who unde...

⏱️ 2 min read 👁️ 529 📅 21 Feb 2026
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How do I calculate the margin on kids menus?

Think of kids menus like an iceberg – what you see on the surface is just the main dish, but the real costs lurk beneath. Many restaurants lose money on kids me...

⏱️ 3 min read 👁️ 528 📅 05 Mar 2026
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What's the difference between COGS and food cost?

Are COGS and food cost the same thing? Many restaurant owners think so, but they're actually measuring different aspects of your business. COGS tracks your tota...

⏱️ 2 min read 👁️ 503 📅 27 Feb 2026
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How do I calculate my gross profit on beverages?

A restaurant owner recently discovered they were losing €300 monthly just from inconsistent beer pours. Most hospitality entrepreneurs can't pinpoint their exac...

⏱️ 2 min read 👁️ 457 📅 21 Feb 2026
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What is a healthy prime cost for a restaurant?

A single percentage can make or break your restaurant's profitability. Prime cost combines your labor and food expenses into one crucial metric that sits betwee...

⏱️ 2 min read 👁️ 450 📅 21 Feb 2026
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How do I calculate prime cost as a restaurant owner?

Over 80% of restaurant failures stem from poor cost control on just two expense categories. Prime cost combines your food and labor expenses - typically 60-70%...

⏱️ 2 min read 👁️ 438 📅 21 Feb 2026
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What does gross margin mean in a restaurant?

A 68% gross margin means you keep €68 from every €100 in sales after covering all purchase costs. This restaurant-wide metric differs from food cost because it...

⏱️ 5 min read 👁️ 418 📅 21 Feb 2026
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How do I calculate the gross margin on a dish?

Restaurant margins can make or break your business — but 73% of owners track the wrong numbers. Gross margin tells you exactly how many euros you pocket after i...

⏱️ 3 min read 👁️ 416 📅 21 Feb 2026
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How do I calculate the cost price per gram or per liter?

Most restaurant owners think they know their ingredient costs - but they're often off by 15-30%. The culprit? Miscalculating cost price per gram or liter. You c...

⏱️ 2 min read 👁️ 410 📅 22 Feb 2026
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Food cost vs. cost of goods sold (COGS): what is the...

Most U.S. restaurant operators use "food cost" and "cost of goods sold" (COGS) interchangeably — and that confusion costs them money on both sides of the P&...

⏱️ 3 min read 👁️ 398 📅 21 Feb 2026
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How do I calculate the food cost of a dish when I use...

Complex dishes with multiple sub-recipes create a cost calculation maze that trips up even experienced restaurateurs. Your signature pasta carbonara might inclu...

⏱️ 2 min read 👁️ 392 📅 27 Feb 2026
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What is a food cost analysis of your menu?

Most restaurant owners can't tell you if their signature dish makes money or bleeds profit. A food cost analysis reveals exactly what percentage of each menu pr...

⏱️ 3 min read 👁️ 385 📅 21 Feb 2026
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How do I calculate the cost price of a dish in my kitchen?

Your monthly food costs are bleeding money through dishes you think are profitable. Most restaurant owners guess at cost prices and discover too late they're se...

⏱️ 5 min read 👁️ 373 📅 21 Feb 2026
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What is a realistic rent percentage of your revenue?

Nearly 60% of restaurant failures stem from excessive fixed costs, with rent being the biggest culprit. Many hospitality entrepreneurs sign leases that consume...

⏱️ 2 min read 👁️ 365 📅 22 Feb 2026
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How do I use historical cost price data to detect...

Nearly 73% of restaurant failures stem from poor cost control, yet most owners only spot purchasing errors after profits have already tanked. Tracking your cost...

⏱️ 3 min read 👁️ 353 📅 27 Feb 2026
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What is the cost price per dish in a restaurant?

Food costs account for 60% of restaurant failures within the first year. Most owners think they know what each dish costs, but they're usually off by 15-30%. He...

⏱️ 3 min read 👁️ 352 📅 21 Feb 2026
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How do I calculate the cost price of a dish when using...

Semi-finished products complicate cost price calculations because you can't just count the purchase price - you need processing costs and yield too. Many kitche...

⏱️ 2 min read 👁️ 336 📅 27 Feb 2026
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🔥 Most read in this category

The most viewed articles in Basic knowledge and formulas

1
What is food cost in a restaurant?
⏱️ 2 min · 👁️ 1,811 times read
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2
What is prime cost for a restaurant?
⏱️ 4 min · 👁️ 675 times read
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3
How do I calculate food cost when there's waste in the...
⏱️ 2 min · 👁️ 549 times read
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