Running a restaurant is like managing three separate businesses under one roof. Most hospitality owners pick which service to offer based on instinct, but the data reveals a clearer path. Here's how to calculate which time periods deliver the highest returns.
Analyze your margin per time period
Each time period operates with a different cost structure. Lunch revolves around speed and lower prices, coffee thrives on high margins with small volumes, and dinner focuses on higher bills but requires more staff.
💡 Example margin comparison:
Bistro with 3 time periods:
- Lunch: €18 average bill, 28% food cost
- Coffee: €6 average bill, 22% food cost
- Dinner: €42 average bill, 32% food cost
Gross margin: Lunch €12.96 | Coffee €4.68 | Dinner €28.56
Calculate total costs per time period
Food cost tells only part of the story. You'll also need to factor in labor costs, energy consumption, and overhead per time period.
- Labor costs: How many FTE do you need per time period?
- Energy costs: Ovens running for lunch vs. just the coffee machine
- Overhead: Rent, insurance split by operating hours
- Purchasing efficiency: Ingredient overlap between time periods
💡 Example total costs:
Lunch service (11:30-15:00):
- Food cost: 28% of revenue
- Staff: 2 FTE × €18/hour × 3.5 hours = €126
- Energy: €45 (oven, grill, dishwasher)
- Overhead: €85 (3.5 hours of 12-hour day)
At 40 covers × €18 = €720 revenue
Total costs: €201 + €256 = €457 (63%)
Measure revenue potential per time period
Don't just examine current figures — consider growth potential too. Which time period can you expand without adding fixed costs?
- Seating: How many realistic rotations per time period?
- Kitchen capacity: Can your chef handle more covers in the same timeframe?
- Market potential: Is there demand for more lunch/coffee/dinner in your area?
- Seasonal influences: Which time periods are weather-dependent?
⚠️ Watch out:
Coffee always appears most profitable per bill, but check if you can run enough volume. 50 coffees at €4.68 margin = €234. That's less than 8 dinners at €28.56 margin.
Analyze your staff allocation per time period
After managing kitchen operations for nearly a decade, I've learned that the biggest cost after food is usually labor. Each time period demands different staffing levels.
💡 Example labor costs:
Restaurant with 60 seats:
- Lunch: 1 chef + 1 server = €72 (4 hours)
- Coffee: 1 server = €18 (1 hour in between)
- Dinner: 2 chefs + 2 servers = €216 (6 hours)
Labor costs per cover vary enormously by time period
Make the final choice based on ROI
Combine all figures and examine return on investment per time period. Which time period delivers the most per invested euro and hour?
- Profit per hour: Total margin divided by opening hours
- Profit per invested euro: Margin divided by total costs
- Profit per square meter: Margin divided by space usage
- Growth potential: Which time period can you expand most easily?
Tools like KitchenNmbrs can handle these calculations automatically by tracking your revenue and cost prices per time period.
How do you calculate the best focus per time period?
Gather revenue and costs per time period
Track your revenue, number of covers, and direct costs per time period for 2 weeks. Also note staff allocation and energy consumption per service.
Calculate margin per time period
Subtract food cost, labor costs, and direct costs from each time period's revenue. Divide the result by the number of hours you're open.
Analyze growth potential
Look at which time period you can expand without additional fixed costs. Calculate how much extra revenue is possible with your current capacity.
✨ Pro tip
Track your profit per hour for each service over 30 days, then double down on the winner. Lunch generating €45/hour beats dinner at €38/hour, even if dinner bills are higher.
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 always choose the time period with the highest margin?
Not necessarily. Also examine volume and growth potential. A lower margin on high volume can deliver more than a high margin on few covers.
How do I allocate overhead costs to time periods?
Divide fixed costs like rent and insurance proportionally by operating hours. If you're open 12 hours and lunch runs 4 hours, then 1/3 of overhead goes to lunch.
Can I combine multiple time periods with the same staff?
Yes, that often improves profitability. Lunch and coffee frequently share staff, as do coffee and happy hour before dinner service.
What's a normal food cost per time period?
Lunch typically runs 25-30%, coffee/tea 20-25%, dinner 28-35%. Coffee has lower food cost but also lower absolute margin per bill.
How do seasonal changes affect time period profitability?
Winter months often favor dinner service while summer boosts lunch and coffee sales. Track your margins quarterly to spot these patterns. Patio seating can shift lunch profitability dramatically in warmer weather.
Should I factor in prep time when calculating labor costs?
Absolutely. Dinner service might need 3 hours of prep while coffee requires minimal preparation. Include all labor hours that support each time period, not just service hours.
How do I measure the success of my choice?
Monitor your profit per hour, profit per cover, and total monthly revenue weekly. Compare with the period before you adjusted your focus.
📚 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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