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Basic knowledge and formulas

Learn the fundamental formulas and calculation methods for hospitality.

How do I calculate the impact of a complimentary amuse...

Most chefs think complimentary amuses are just a nice touch that barely affects the bottom line. But these 'free' bites can silently drain thousands from your a...

⏱️ 3 min read 👁️ 244 📅 27 Feb 2026
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How do I choose a food cost target for my restaurant?

A proper food cost percentage keeps your dishes profitable and your restaurant in business. Most owners wing it with random percentages, bleeding money they don...

⏱️ 3 min read 👁️ 242 📅 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 👁️ 240 📅 22 Feb 2026
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What is a good ratio between labor costs and revenue?

Monday morning, and you're staring at last month's payroll costs wondering if you're bleeding money. That nagging feeling that labor expenses are crushing your...

⏱️ 2 min read 👁️ 240 📅 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 👁️ 240 📅 21 Feb 2026
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What's the impact of a €3 upsell per table on your...

Most restaurant owners obsess over cutting costs while ignoring the goldmine sitting at every table. A simple €3 upsell per table can transform your annual prof...

⏱️ 2 min read 👁️ 239 📅 27 Feb 2026
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How do I calculate my margin when working with...

All-inclusive group prices appear simple on paper, yet margin calculations prove far more intricate than standard à la carte pricing. Mixed VAT structures, dive...

⏱️ 3 min read 👁️ 234 📅 27 Feb 2026
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How do you know if your restaurant is viable based on...

Your restaurant buzzes with activity every night, yet your bank account tells a different story. Most owners discover they're bleeding money only after twelve m...

⏱️ 3 min read 👁️ 233 📅 22 Feb 2026
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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...

⏱️ 2 min read 👁️ 233 📅 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 👁️ 232 📅 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 👁️ 228 📅 27 Feb 2026
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What is a healthy net profit margin in hospitality?

Picture this: your restaurant's packed every night, but you're still struggling to pay the bills. Many hospitality entrepreneurs know their revenue, but have no...

⏱️ 3 min read 👁️ 228 📅 22 Feb 2026
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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...

⏱️ 3 min read 👁️ 228 📅 21 Feb 2026
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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...

⏱️ 2 min read 👁️ 223 📅 21 Feb 2026
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What is a realistic time investment for weekly food cost...

Managing food costs is like checking your car's oil - ignore it for too long and you'll face expensive breakdowns. Most restaurant owners think this requires ho...

⏱️ 3 min read 👁️ 222 📅 27 Feb 2026
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How can I adjust my menu if my food cost is too high?

Many restaurant owners think high food costs mean they need to overhaul their entire menu. That's rarely true. The real issue is usually just 3-5 dishes quietly...

⏱️ 3 min read 👁️ 222 📅 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 👁️ 222 📅 21 Feb 2026
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How do I determine the price of a new cocktail?

Ever wonder why some bars thrive while others barely break even on their cocktail program? Most bar managers guess at pricing, unknowingly hemorrhaging profits...

⏱️ 2 min read 👁️ 221 📅 22 Feb 2026
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What is a healthy food cost for a restaurant?

A neighborhood bistro selling €22 pasta dishes needs exactly €6.05 in ingredients to hit a 30% food cost target. Most restaurant owners miscalculate this figure...

⏱️ 2 min read 👁️ 220 📅 21 Feb 2026
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How do I calculate the margin on takeaway meals?

Are you actually making money on that €15 pasta you just sent out for delivery? Most restaurant owners think they know, but takeaway margins work differently th...

⏱️ 2 min read 👁️ 219 📅 21 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?
⏱️ 2 min · 👁️ 1,503 times read
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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?
⏱️ 3 min · 👁️ 536 times read
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