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...
What is the difference between food cost and cost price?
A chef I know was selling his signature burger for €12 while spending €8 on ingredients - he thought he was making money until he realized his 67% food cost was...
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...
What is prime cost in the hospitality industry?
Most restaurants track food costs religiously but ignore the bigger picture. Prime cost combines your food expenses with labor costs to show exactly how much re...
What is a good ratio between food and beverages in your...
Café Brasserie De Kust struggled with razor-thin margins until they discovered their beverage sales were only 18% of revenue. Most successful restaurants mainta...
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...
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...
What is net profit margin for a healthy hospitality...
Picture this: you're checking your books after a busy Saturday night, and despite serving 200 covers, your actual profit barely covers next week's supplies. Mos...
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...
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...
What food cost should I maintain for beverages?
Most restaurants nail their food costs but completely mess up their beverage margins. Alcoholic drinks typically run 15-25% food cost, while soft drinks and cof...
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...
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...
What are normal wine margins in a restaurant?
A fine dining restaurant charging 300% on wine looks greedy, while a casual bistro with the same margin seems perfectly reasonable. Your wine margins need to ma...
How do I calculate the selling price of a drink?
Ever wonder if you're charging enough for that cocktail or beer? Most restaurant owners guess their drink prices or rely on outdated rules of thumb. But with th...
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...
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...
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%...
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...
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...
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