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Basic knowledge and formulas

Learn the fundamental formulas and calculation methods for hospitality.

How do I determine a minimum margin to cover my fixed costs?

Most restaurant owners obsess over peak dinner service while their quiet Tuesday lunch slowly bleeds money. Your rent, insurance, and core staff wages don't car...

⏱️ 3 min read 👁️ 167 📅 21 Feb 2026
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How can I use food cost to make better purchasing...

I'll be honest - most restaurant owners get steamrolled in supplier negotiations because they don't know their numbers. You accept price hikes without understan...

⏱️ 3 min read 👁️ 166 📅 22 Feb 2026
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What's the difference between food cost on paper and...

Most restaurant owners believe their food cost calculations until they see their monthly P&L. You've done the math perfectly - exact portions, zero waste, every...

⏱️ 2 min read 👁️ 166 📅 21 Feb 2026
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How do I account for trim loss in my food cost?

Trim loss can dramatically inflate your food cost without warning. Most restaurant owners calculate based on purchase price per kilo, overlooking that processin...

⏱️ 3 min read 👁️ 166 📅 21 Feb 2026
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How do I determine the price of a seasonal special?

Seasonal specials can be goldmines, but only if you price them correctly. Many restaurants guess the price or copy what others do, which means they leave money...

⏱️ 3 min read 👁️ 165 📅 22 Feb 2026
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How do I know if my menu is properly structured in terms...

Picture this: you're watching customers scan your menu for thirty seconds before immediately ordering the cheapest main course available. That sinking feeling h...

⏱️ 3 min read 👁️ 165 📅 22 Feb 2026
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What's the difference between an expensive menu and a...

Your €45 steak might be losing you money while your €18 pasta makes you rich. Most restaurant owners obsess over raising prices but ignore the math that actuall...

⏱️ 3 min read 👁️ 164 📅 21 Feb 2026
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How can I evaluate my menu for margins?

At Café Luna, the owner discovered their bestselling truffle pasta was bleeding €200 weekly despite 50+ orders. Each dish has a different margin, but most resta...

⏱️ 3 min read 👁️ 164 📅 21 Feb 2026
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How do I calculate the ideal portion size for my selling...

Most restaurant owners think bigger portions equal happier customers, but this myth kills profits daily. Choosing portions by gut feeling instead of math means...

⏱️ 2 min read 👁️ 163 📅 27 Feb 2026
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How do I calculate the euro loss from a 20 gram portion...

Most restaurateurs think 20 grams extra per portion won't hurt their bottom line—they're wrong. With 100 covers daily, you're bleeding €600-1200 monthly dependi...

⏱️ 4 min read 👁️ 163 📅 27 Feb 2026
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How do I calculate the margin on a high tea or high wine?

You're losing money on high tea without realizing it. Most restaurant owners price these experiences like regular dishes, but you're actually selling a complete...

⏱️ 3 min read 👁️ 163 📅 21 Feb 2026
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What food cost should I aim for with desserts?

It's Monday morning and you're reviewing last week's numbers. Your main courses hit 32% food cost, but those chocolate tarts? They're sitting pretty at 24%. Des...

⏱️ 2 min read 👁️ 163 📅 21 Feb 2026
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How do I calculate the margin on kids menus?

Your kids menu might be bleeding money without you realizing it. Most restaurants miscalculate because they forget to account for smaller portions, bundled drin...

⏱️ 3 min read 👁️ 162 📅 21 Feb 2026
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What's the difference between menu engineering and food...

Your Monday morning starts with a chef arguing that his €35 wagyu steak deserves menu priority, while your accountant insists the €18 pasta with 28% food cost i...

⏱️ 3 min read 👁️ 162 📅 21 Feb 2026
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How do I know if my lunch is profitable compared to my...

73% of restaurants report lower profit margins during lunch service compared to dinner, yet most owners can't pinpoint exactly why. The difference lies in food...

⏱️ 3 min read 👁️ 161 📅 22 Feb 2026
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How do I include waste in my food cost?

How much money are you throwing in the bin each week without even realizing it? Most restaurant owners track their food purchases religiously but completely ign...

⏱️ 3 min read 👁️ 161 📅 21 Feb 2026
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What is a realistic gross profit margin for a small...

Most restaurant owners think 50% gross profit margin sounds decent - it's not. Small restaurants need 60-70% gross margin to survive, yet many operate at danger...

⏱️ 3 min read 👁️ 160 📅 22 Feb 2026
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How do I check if I have dishes with negative margins?

Most restaurants unknowingly serve dishes that lose money with every single order. Your salmon salad might look profitable at €16.50, but if ingredients cost €1...

⏱️ 2 min read 👁️ 160 📅 21 Feb 2026
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How do I calculate what happens if I make my portions...

Monday morning inventory reveals your weekend steak costs spiraled again. Your chef's been generous with portions, but how much is each extra gram actually cost...

⏱️ 2 min read 👁️ 159 📅 21 Feb 2026
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How do I calculate the impact of lower food cost on my...

A 5% food cost reduction on €500,000 annual revenue adds €25,000 straight to your profit. Most restaurant owners know lower food costs help, but can't calculate...

⏱️ 3 min read 👁️ 159 📅 21 Feb 2026
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🔥 Most read in this category

The most viewed articles in Basic knowledge and formulas

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What is food cost in a restaurant?
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