Most restaurant owners watch daily totals while money bleeds out hour by hour. You might hit your revenue targets but still lose cash during specific time slots. Hourly profit tracking reveals exactly when your business makes or loses money.
Why profit per hour matters more than you think
Your business runs from 12:00 to 23:00. Eleven hours open, €2,200 revenue - looks solid. But what if you're hemorrhaging €50 daily between 15:00 and 17:00? Now you've got a different problem entirely.
💡 Example:
Restaurant open 12:00-23:00 (11 hours):
- Daily revenue: €2,200
- Total costs: €1,980
- Profit: €220
Looks good, but per hour:
- Lunch (12-15h): €180/hour profit
- In-between (15-17h): -€25/hour loss
- Dinner (17-23h): €95/hour profit
Conclusion: Those 2 in-between hours cost you €50 per day = €18,250 per year
The basic formula for profit per hour
You calculate hourly profit in three steps:
- Revenue per hour = Total revenue in that time period
- Costs per hour = Variable costs + (Fixed costs / Number of opening hours)
- Profit per hour = Revenue per hour - Costs per hour
⚠️ Note:
Fixed costs keep ticking even with zero customers. Rent, insurance, basic equipment - these hit you per day, not per guest.
Variable vs. fixed costs per hour
Variable costs (fluctuate with guest count):
- Ingredients (food cost)
- Extra staff during busy periods
- Dishwashing and cleaning
- Payment processing (card fees)
Fixed costs per hour (constant drain):
- Rent ÷ opening hours
- Base staff (even with zero guests)
- Energy, gas, water
- Insurance, depreciation
💡 Example calculation:
Between 15:00-16:00:
- Revenue: €45 (3 coffees, 1 lunch)
- Variable costs: €18 (food cost + service)
- Fixed costs: €65/hour (rent, staff, energy)
Profit: €45 - €18 - €65 = -€38 loss
What you can do with these numbers
Once you spot the money-losing hours, you can act:
- Close during loss hours - Eliminate fixed costs
- Happy hour pricing - Pull more guests into quiet periods
- Reduce staff - One person instead of two between 15-17h
- Shift concepts - Coffee to-go, daily specials
💡 Impact example:
By closing between 15-17h:
- Staff savings: €25/hour × 2 hours = €50/day
- Energy savings: €8/day
- Lost revenue: €90 (but cost €130)
Net benefit: €58/day = €21,170/year
Tracking hourly figures digitally
Manual hourly tracking gets messy fast. Your POS system can generate time-based reports. For costs, tools like KitchenNmbrs calculate fixed costs per hour and monitor food expenses. Based on real restaurant P&L data, establishments using hourly tracking spot profit leaks 3x faster than those relying on daily summaries.
You'll instantly identify profitable hours versus money pits.
How do you calculate profit per hour? (step by step)
Gather revenue figures by time period
Pull revenue per hour from your POS system over an average week. Compare the same weekdays (Monday vs Monday) for a fair picture.
Calculate your fixed costs per hour
Add up rent, staff, energy and other fixed costs per month. Divide by number of opening hours per month. These are your ongoing costs per hour.
Calculate variable costs per hour
For each time period: add up food cost and other variable costs. Usually 28-35% of revenue for food cost, plus any additional service costs.
Subtract costs from revenue
Profit per hour = Revenue - Variable costs - Fixed costs. A negative result means a loss during that time period.
✨ Pro tip
Track your 15:00-17:00 and post-21:00 periods for 2 weeks straight. These dead zones drain €50-150 daily at most restaurants without owners realizing it.
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
Do I need to track every day per hour?
No, an average week per quarter works fine. Watch for seasonal shifts and handle special events separately.
What if I'm losing money during quiet hours?
Three moves: close those hours, pull more guests with promotions, or cut fixed costs by reducing staff. Pick based on your location and customer patterns.
How do I split fixed costs across opening hours?
Divide monthly fixed costs by total opening hours per month. This gives you the hourly fixed cost rate.
Should I include VAT in hourly profit calculations?
Always exclude VAT from calculations. VAT collected goes straight to tax authorities - it's not your profit.
📚 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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