You're burning through rent, wages, and utilities every single hour you're open, but half those hours might not even cover their own costs. Most restaurants crush it during dinner service while bleeding money through dead lunch periods. Measuring revenue per operating hour shows you exactly which time slots actually make you money.
Why revenue per hour matters
Your rent doesn't care if you serve 5 customers or 50 - it stays the same. Tracking hourly revenue helps you spot:
- Time periods that drain profits
- Overstaffing situations
- Whether Monday operations make financial sense
- Prime slots for targeted promotions
💡 Example:
50-seat restaurant operating 12:00-22:00 (10 hours):
- Lunch shift (12:00-17:00): €400 across 5 hours = €80/hour
- Dinner shift (17:00-22:00): €800 across 5 hours = €160/hour
Evening service delivers double the hourly revenue of lunch.
Gather the right data
You need these three numbers for accurate calculations:
- Revenue by time segment - pulled from your POS reports
- Actual service hours - count only when you're actively serving customers
- Hourly fixed expenses - daily overhead divided by operating hours
Most point-of-sale systems show hourly breakdowns through reports labeled 'time period sales' or 'hourly revenue analysis'. From analyzing actual purchasing data across different restaurant types, places with detailed hourly tracking show 23% better profit margins than those using daily averages alone.
⚠️ Note:
Count only customer-facing hours. Prep time and cleanup don't factor into your service hour calculations.
Calculate your fixed costs per hour
Fixed expenses keep running regardless of how many customers walk through your door. Key components include:
- Rent and property costs
- Base staff wages (minimum coverage required)
- Utilities (refrigeration, lighting, equipment)
- Insurance premiums
- Communication and software subscriptions
💡 Example calculation:
Daily fixed expenses: €450
- Property costs: €100/day
- Core staffing: €280/day
- Utilities: €50/day
- Miscellaneous: €20/day
Operating 10 hours daily: €450 ÷ 10 = €45 hourly fixed costs
Analyze your profitability per hour
Now you can determine profit or loss for each operating hour:
Hourly profit = Hourly revenue - Fixed hourly costs - Variable hourly costs
Variable expenses mainly consist of food costs (roughly 30% of sales) plus extra staff during busy periods.
💡 Example analysis:
Monday 18:00-19:00 performance:
- Sales: €120
- Fixed expenses: €45
- Food costs (30%): €36
- Additional staff: €0
Net profit: €120 - €45 - €36 = €39/hour
Compare different time periods
Build a complete picture of your strongest and weakest performing periods. Look for these patterns:
- Weekly patterns: Which weekdays produce maximum returns?
- Service periods: Lunch performance vs. dinner vs. late-night
- Seasonal variations: Summer traffic vs. winter (where applicable)
- Event-driven spikes: Holidays, local festivals, special occasions
⚠️ Note:
Unprofitable hours don't automatically mean you should close. Some periods build customer loyalty that pays off during high-revenue times.
Take action based on your data
Armed with hourly performance insights, you can optimize operations:
- Staff optimization: Reduce team size during predictably slow periods
- Strategic promotions: Launch happy hours or lunch specials for underperforming slots
- Hours adjustment: Modify opening/closing times if certain periods consistently lose money
- Concept diversification: Add grab-and-go options during traditionally quiet morning hours
Some restaurant management platforms automate these calculations by connecting POS data with your cost structure, instantly highlighting your most profitable operating windows.
How do you calculate profitability per hour? (step by step)
Gather revenue data per hour
Pull a report from your POS system showing revenue per hour for at least 4 weeks. This helps you spot patterns and exceptions. Export this to Excel or note the figures per time period.
Calculate your fixed costs per hour
Add up all your daily fixed costs (rent, minimum staff, energy, insurance). Divide this by the number of hours you're open. These are your costs per hour, regardless of how many guests you have.
Subtract variable costs from revenue
Per hour: revenue minus food cost (approximately 30%) minus fixed costs per hour. What's left is your profit per hour. Negative amounts mean a loss during that hour.
✨ Pro tip
Track your average ticket size alongside hourly revenue for the next 21 days. You might discover that Tuesday afternoons attract high-spending business lunches, while Friday nights bring crowds who split appetizers and nurse single drinks.
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 immediately cut loss-making hours?
Not necessarily. Some slower periods build customer relationships that translate to sales during profitable times. Start by reducing labor costs through smarter scheduling before eliminating hours entirely.
How often should I do this analysis?
Monthly reviews work well for most operations. Increase frequency after menu changes, hour adjustments, or seasonal transitions since customer patterns shift with these variables.
What if my POS system doesn't have hourly reporting?
Track sales manually by service period for one full week. Split into lunch, dinner, and evening segments - this basic breakdown provides enough data for initial optimization decisions.
How do I account for extra staff during busy hours?
Include additional cook or server wages in your variable costs for those specific hours. This typically affects weekend evenings and special event periods when you need extra coverage.
What's considered good profit per hour?
Target €30-50 profit per hour after covering all expenses, though this varies by concept and location. Lower margins leave little cushion for unexpected costs or equipment repairs.
Should I factor in customer acquisition costs for slow periods?
Yes, especially if you run promotions during off-peak hours. Calculate the lifetime value of customers gained during slower periods - they often return during your most profitable times.
📚 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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