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Basic knowledge and formulas

Learn the fundamental formulas and calculation methods for hospitality.

What's the benefit of standard portions for my margins?

Most restaurants think generous portions keep customers happy, yet they're bleeding money with every oversized plate. Your team might be giving 250g steaks inst...

⏱️ 3 min read 👁️ 177 📅 22 Feb 2026
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How do I read my cash register report with margins in mind?

Your cash register report holds vital margin data that most restaurant owners completely ignore. Revenue might climb while margins plummet due to rising costs o...

⏱️ 2 min read 👁️ 177 📅 22 Feb 2026
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How do I account for staff meals in my food cost?

Staff meals inflate food costs by an average of 1.8% across restaurant operations. Most owners track these expenses incorrectly, creating distorted profit margi...

⏱️ 3 min read 👁️ 177 📅 21 Feb 2026
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How do I train my chefs to portion consistently without...

Consistent portions are crucial for your food cost. While some restaurants obsess over complicated inventory systems, the real profit killer is right on the pla...

⏱️ 3 min read 👁️ 176 📅 27 Feb 2026
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What's the risk if you don't monitor your margins over time?

Unmonitored margins work like a slow leak in your kitchen's gas line - everything seems fine until the damage becomes catastrophic. Your dining room stays busy...

⏱️ 3 min read 👁️ 175 📅 22 Feb 2026
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How do I deal with seasonal fluctuations in purchase prices?

Managing seasonal price swings is like surfing unpredictable waves – you need balance and timing. Asparagus jumps from €8 per kilo in May to €25 in January. Tom...

⏱️ 3 min read 👁️ 175 📅 22 Feb 2026
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How do I handle different VAT rates in my menu?

While most businesses deal with a single VAT rate, restaurants juggle multiple rates that can make or break your profit calculations. Food items get taxed at 9%...

⏱️ 2 min read 👁️ 175 📅 22 Feb 2026
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How do I calculate how many dishes I need to sell per day?

Most restaurant owners operate blindly, hoping their busy nights will somehow translate to profit. But without knowing your exact break-even point, you're essen...

⏱️ 3 min read 👁️ 175 📅 21 Feb 2026
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How do I get the correct ingredient prices from my invoices?

Most restaurants guess at their ingredient costs while successful operators extract exact prices from every invoice. The difference between estimating and track...

⏱️ 2 min read 👁️ 175 📅 21 Feb 2026
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How do I account for complimentary bread or garnish in...

Nearly 73% of restaurants underestimate their true food costs by ignoring complimentary items. Bread baskets, garnishes, and other 'free' offerings aren't actua...

⏱️ 2 min read 👁️ 175 📅 21 Feb 2026
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What is a healthy ratio between fixed and variable costs?

Most restaurant owners discover their cost structure is broken only after watching their first profitable month turn into a loss. The culprit? An unbalanced rat...

⏱️ 3 min read 👁️ 174 📅 22 Feb 2026
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How do I calculate the margin on off-menu specials?

Picture this: your head chef creates an amazing truffle pasta special, prices it at €28, and sells 40 portions. Sounds like a win until you realize each plate c...

⏱️ 3 min read 👁️ 174 📅 21 Feb 2026
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What is revenue in a restaurant?

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...

⏱️ 3 min read 👁️ 174 📅 21 Feb 2026
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How do I determine my minimum selling price based on...

Your minimum selling price determines whether you make or lose money on each dish. Some restaurants nail their pricing and build solid profit margins, while oth...

⏱️ 3 min read 👁️ 173 📅 27 Feb 2026
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How do I calculate the cost price of a seasonal dish...

78% of restaurants lose money on seasonal dishes due to poor price tracking. Many owners calculate cost prices once and forget to adjust them as ingredient cost...

⏱️ 2 min read 👁️ 173 📅 27 Feb 2026
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What is a normal food cost for a lunch business?

Food cost in a lunch business typically runs between 25% and 32%, which beats most full restaurants since lunch dishes tend to be simpler. But most lunch operat...

⏱️ 3 min read 👁️ 173 📅 21 Feb 2026
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How do I recognize from my numbers that there might be...

Detecting kitchen theft is like being a detective with spreadsheets as your magnifying glass. Those small, consistent leaks often hide in plain sight within you...

⏱️ 3 min read 👁️ 172 📅 22 Feb 2026
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What are normal beer margins in hospitality?

Most operators obsess over food costs while their beer margins quietly leak money. Draft beer typically delivers 70-85% margins, yet many venues don't even trac...

⏱️ 2 min read 👁️ 172 📅 21 Feb 2026
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What is a healthy prime cost for an independent...

I've watched too many Dutch restaurant owners fail because they never understood prime cost. This single number - combining your food and labor expenses - shoul...

⏱️ 2 min read 👁️ 171 📅 27 Feb 2026
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How can I use numbers to motivate my team?

Transform your kitchen staff from cost-conscious to profit-proud by sharing the right financial metrics. Numbers become motivational tools rather than criticism...

⏱️ 3 min read 👁️ 171 📅 22 Feb 2026
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🔥 Most read in this category

The most viewed articles in Basic knowledge and formulas

1
What is food cost in a restaurant?
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2
How can I see if my profit comes mainly from drinks or food?
⏱️ 3 min · 👁️ 723 times read
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3
What is prime cost in the hospitality industry?
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