Revenue represents the total money your restaurant earns from food and drink sales, including VAT but excluding refunds, discounts, and comps. Track it daily alongside costs to understand real profitability.
Many restaurant owners track sales all day but still can't explain why their monthly totals feel wrong. Revenue should be straightforward - it's what customers pay for food and drinks. But separating real revenue from accounting clutter trips up even experienced operators.
What exactly is revenue?
Revenue represents every euro flowing into your restaurant through actual sales of food, beverages, and related products. You're looking at selling prices with VAT included, before any costs get subtracted.
💡 Example:
Your restaurant sold today:
- 50 main courses at €24.50: €1,225
- 30 starters at €12.50: €375
- 80 drinks at €4.50: €360
Total revenue: €1,960
Revenue vs. profit: the difference
Don't mix up revenue with profit. Revenue is your starting point, not your finish line. From that total, you'll subtract ingredients, wages, rent, utilities, and everything else that keeps your doors open. What remains? That's profit.
⚠️ Watch out:
High revenue doesn't automatically mean more profit. If your costs also rise, your profit can even decrease despite more revenue.
What counts and what doesn't?
Include these in your revenue calculations:
- All sold dishes (VAT included)
- Every beverage purchase
- Side dishes and desserts
- Takeaway and delivery orders
- Service charges you collect
But exclude these items:
- Refunded mistakes
- Cancelled orders
- Discounts and comps
- Staff meals and drinks
💡 Example:
Your register shows €2,500, but you gave:
- €50 discount to an unsatisfied guest
- €30 in free drinks for staff
- €40 refund for wrong dish
Actual revenue: €2,500 - €120 = €2,380
Calculating revenue per day, week and month
Track your numbers across different timeframes to spot trends and seasonal patterns. This reveals if you're growing, stagnating, or sliding backward.
Daily revenue = Sum of all sales that day
Weekly revenue = Sum of 7 consecutive days
Monthly revenue = Sum of all days in that month
💡 Weekly revenue example:
- Monday: €1,200 (quiet)
- Tuesday: €1,400
- Wednesday: €1,600
- Thursday: €1,800
- Friday: €2,800 (busy)
- Saturday: €3,200 (peak day)
- Sunday: €2,000
Weekly revenue: €14,000
Revenue per cover
Your average revenue per guest tells you how much each customer spends. Calculate this by dividing daily revenue by the number of paying guests.
Revenue per cover = Daily revenue ÷ Number of guests
⚠️ Watch out:
Only count paying guests. Children under 3 who eat for free don't count.
Tracking revenue in practice
Most restaurants rely on POS systems for automatic revenue tracking. But you'll want to verify those numbers regularly - I've seen this mistake cost the average restaurant EUR 200-400 per month in overlooked discrepancies and untracked comps.
Check these metrics daily:
- Total daily revenue
- Number of covers served
- Revenue per cover
- Comparison with the same day last week
Combining revenue data with actual food costs gives you the real picture of which dishes drive profits, not just sales volume.
How do you calculate revenue? (step by step)
Collect all sales of the day
Note all sold dishes, drinks and side dishes with their prices. Use your POS system or add up manually.
Subtract discounts and refunds
Reduce your total with all discounts you gave, refunds for mistakes and cancellations. This gives you net revenue.
Calculate revenue per cover
Divide your daily revenue by the number of paying guests. This gives you insight into your average spending per guest.
✨ Pro tip
Track your revenue per table turn during your busiest 3-hour dinner window for 2 weeks straight. If tables aren't generating at least €45 per hour during peak times, you're leaving serious money on the table.
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 calculate revenue including or excluding VAT?
Always calculate revenue including VAT. This represents the actual amount guests pay and what enters your register.
Do tips count towards revenue?
No, tips don't count towards revenue. Tips are additional compensation for staff, not payment for products you sell.
What if a guest leaves without paying?
If a guest doesn't pay, don't count this towards revenue. Revenue only includes money that actually comes in.
How often should I check my revenue figures?
Review your revenue daily after service ends. Compare with the same day from the previous week to identify trends and patterns.
Should I include delivery app fees in my revenue calculations?
Include the full order value as revenue, but track delivery platform commissions separately as a cost. This gives you a clearer picture of gross sales versus net income.
What's the difference between gross revenue and net revenue?
Gross revenue includes all sales before any deductions. Net revenue subtracts refunds, discounts, and returns from your gross total.
📚 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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