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Basic knowledge and formulas

Learn the fundamental formulas and calculation methods for hospitality.

How do I use historical cost price data to detect...

Nearly 73% of restaurant failures stem from poor cost control, yet most owners only spot purchasing errors after profits have already tanked. Tracking your cost...

⏱️ 3 min read 👁️ 362 📅 27 Feb 2026
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What is the cost price per dish in a restaurant?

Food costs account for 60% of restaurant failures within the first year. Most owners think they know what each dish costs, but they're usually off by 15-30%. He...

⏱️ 3 min read 👁️ 353 📅 21 Feb 2026
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How do I calculate the cost price of a dish when using...

Semi-finished products complicate cost price calculations because you can't just count the purchase price - you need processing costs and yield too. Many kitche...

⏱️ 2 min read 👁️ 341 📅 27 Feb 2026
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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...

⏱️ 2 min read 👁️ 340 📅 21 Feb 2026
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What is profit in a restaurant business?

Maria's restaurant serves 200 customers daily, yet she can't afford her own salary. She's confused because her dining room stays packed, but her bank account te...

⏱️ 2 min read 👁️ 339 📅 21 Feb 2026
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How do I interpret a 40% food cost in a fine dining...

Nearly 70% of restaurants struggle with food cost control, yet a 40% food cost isn't universally bad news. Fine dining establishments can often absorb this perc...

⏱️ 2 min read 👁️ 334 📅 27 Feb 2026
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What is a realistic percentage of labor costs from your...

Labor costs are often a competing platformggest expense after food costs. While many hospitality entrepreneurs stress over food margins, they often overlook lab...

⏱️ 3 min read 👁️ 334 📅 22 Feb 2026
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How do I calculate food cost per dish?

Most restaurants fail because owners think they're making money when they're actually bleeding cash. Food cost is the percentage of your selling price that goes...

⏱️ 5 min read 👁️ 326 📅 21 Feb 2026
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How do I calculate my margin when a delivery platform...

Most restaurant owners don't realize they're losing money on every delivery order. You calculate margins based on your regular prices, but forget that Uber Eats...

⏱️ 3 min read 👁️ 322 📅 21 Feb 2026
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How do I convert cost price to a good selling price?

Most restaurant owners believe pricing is just adding markup to ingredient costs. But this myth leads to underpriced menus and shrinking profits. The real formu...

⏱️ 3 min read 👁️ 319 📅 21 Feb 2026
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How do I account for cooking loss in my food cost?

A 250-gram raw ribeye shrinks to just 175 grams after grilling – yet most restaurant owners still calculate costs using the raw weight. This oversight inflates...

⏱️ 3 min read 👁️ 314 📅 21 Feb 2026
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How do I process VAT in my selling prices as a food...

Over 40% of restaurant owners miscalculate VAT in their pricing, directly impacting profit margins. Many food service entrepreneurs lose money unintentionally b...

⏱️ 3 min read 👁️ 304 📅 22 Feb 2026
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How do I calculate my average margin per guest for...

Most restaurants see wildly different profit margins between lunch and dinner service, yet many owners never bother to measure the gap. While lunch crowds grab...

⏱️ 2 min read 👁️ 302 📅 27 Feb 2026
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How do I calculate the effect of VAT on my selling price?

I'll admit it – VAT calculations confused me for years as a restaurant owner. Most of us make the same mistake: calculating food costs using VAT-inclusive price...

⏱️ 3 min read 👁️ 295 📅 21 Feb 2026
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What's the difference between food cost and prime cost?

Most restaurant owners obsess over food cost percentages while completely ignoring the number that actually determines their profit. Food cost tracks ingredient...

⏱️ 2 min read 👁️ 293 📅 21 Feb 2026
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What is a healthy food margin in a restaurant?

Do you know if your restaurant dishes actually make money? Many restaurant owners think they're profitable but lose money on every plate served. Your food margi...

⏱️ 2 min read 👁️ 288 📅 21 Feb 2026
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How do I calculate the cost price per portion for catering?

Most caterers wing it with pricing and wonder why their profits vanish on big events. But smart operators know that accurate portion costing separates profitabl...

⏱️ 3 min read 👁️ 288 📅 21 Feb 2026
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How do I start calculating the cost of my first dish?

Over 60% of restaurants fail within their first year, and inaccurate food costing plays a major role in these closures. Your dish costs determine if you're maki...

⏱️ 3 min read 👁️ 285 📅 22 Feb 2026
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How do I calculate the margin on a brunch or buffet?

Picture this: you're running a Sunday brunch and watch one guest pile their plate high with smoked salmon while another barely touches the expensive items. How...

⏱️ 3 min read 👁️ 285 📅 21 Feb 2026
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How do I calculate my restaurant's daily break-even revenue?

Break-even revenue tells you exactly how much daily turnover you need to avoid losing money. Most restaurant owners operate blindly without this crucial number,...

⏱️ 2 min read 👁️ 283 📅 27 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
What is prime cost in the hospitality industry?
⏱️ 3 min · 👁️ 680 times read
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3
How do I calculate food cost when there's waste in the...
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