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Basic knowledge and formulas

Learn the fundamental formulas and calculation methods for hospitality.

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 👁️ 281 📅 21 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 👁️ 278 📅 22 Feb 2026
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What is actual food cost in a restaurant?

Most restaurants think they know their food costs, but they're wrong. You're probably calculating ingredient costs for your signature dishes while completely ig...

⏱️ 2 min read 👁️ 277 📅 21 Feb 2026
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How do I calculate my margins excluding VAT?

While most restaurant owners celebrate healthy margins on paper, they're often looking at inflated numbers that include VAT. The tax you collect from customers...

⏱️ 2 min read 👁️ 273 📅 21 Feb 2026
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What is a realistic occupancy rate per evening?

A realistic occupancy rate helps you plan better and forecast how many guests you can expect. Many restaurant owners calculate too optimistically, which leads t...

⏱️ 3 min read 👁️ 272 📅 22 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 👁️ 272 📅 21 Feb 2026
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Average Spend Per Guest: Formula + Example 2026

Picture this: you're closing up after a busy Saturday night, but you can't tell if those packed tables actually translated to profitable sales. Your average spe...

⏱️ 3 min read 👁️ 270 📅 22 Feb 2026
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How do I calculate the cost price of a cocktail with...

Accurate cocktail costing prevents profit leaks that drain your bar's bottom line. Most bartenders guess at drink costs, unknowingly sacrificing margins with ev...

⏱️ 3 min read 👁️ 268 📅 22 Feb 2026
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What's the difference between theoretical food cost...

Your food cost calculations look perfect on paper, but your profits keep shrinking. Theoretical food cost reflects your recipe calculations, while actual food c...

⏱️ 4 min read 👁️ 267 📅 27 Feb 2026
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How do I calculate the selling price of a main course?

How do you know if your main course pricing actually turns a profit? Too many restaurant owners wing it with pricing, unknowingly bleeding money on every plate...

⏱️ 4 min read 👁️ 267 📅 21 Feb 2026
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How do I correctly process staff meals in my food cost...

Are your food costs mysteriously high despite careful purchasing? Staff meals might be the culprit - a hidden expense that throws off your calculations. You're...

⏱️ 3 min read 👁️ 266 📅 27 Feb 2026
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How can I see which day parts earn me the most?

Ever wonder if your busiest hours actually bring in the most profit? Your lunch might generate 40% of revenue with half the staff, while dinner brings crowds bu...

⏱️ 2 min read 👁️ 262 📅 22 Feb 2026
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What is a good dish rotation speed for your menu?

Most restaurants get menu rotation completely backwards – they either change everything at once or never change anything at all. The sweet spot? Refreshing 20-4...

⏱️ 3 min read 👁️ 261 📅 21 Feb 2026
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How do I calculate food cost when working with...

A single carbonara dish uses 2 eggs from a 30-piece tray, but how do you calculate the exact cost per portion? Individual items like eggs, onions, and peppers r...

⏱️ 2 min read 👁️ 259 📅 21 Feb 2026
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What's the difference between gross portion weight and...

Think of gross and net portion weight like an iceberg — what you see on the surface isn't the whole story. Most restaurant owners calculate with the weight they...

⏱️ 2 min read 👁️ 257 📅 27 Feb 2026
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How do I calculate food cost including waste percentage?

It's Monday morning and you're staring at last month's P&L wondering where your profits went. You calculated everything perfectly, yet your food costs are 8% hi...

⏱️ 3 min read 👁️ 256 📅 21 Feb 2026
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How can you decide which dishes to keep based on numbers?

Which dishes keep your business profitable and which ones cost you money? Many restaurant owners cling to popular dishes that secretly drain profits. Smart oper...

⏱️ 3 min read 👁️ 253 📅 22 Feb 2026
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How can I use the numbers to review my opening hours?

Are you losing money during certain hours without realizing it? Many restaurant owners set opening hours based on tradition or guesswork. But analyzing your hou...

⏱️ 3 min read 👁️ 252 📅 22 Feb 2026
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What's the difference between margin in euros and margin...

A pasta dish with 85% margin might actually lose you money compared to a steak with 60% margin. Euro margins show absolute profit per plate, while percentage ma...

⏱️ 2 min read 👁️ 252 📅 21 Feb 2026
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How do I make my restaurant future-proof with better...

83% of restaurants that survive economic downturns have food costs below 32%. Most restaurant owners chase higher revenue while their margins slowly erode. Stro...

⏱️ 3 min read 👁️ 250 📅 22 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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How do I calculate food cost when there's waste in the...
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