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Basic knowledge and formulas

Learn the fundamental formulas and calculation methods for hospitality.

What food cost should I maintain for main courses?

Most restaurant owners think they know their main course food costs, but they're usually wrong by 5-10%. This miscalculation can drain thousands from your annua...

⏱️ 2 min read 👁️ 248 📅 21 Feb 2026
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How do I calculate margin if I think excluding VAT?

Most restaurant owners make a critical error when calculating their margins - they include VAT in their numbers, creating a false sense of profitability. VAT is...

⏱️ 2 min read 👁️ 247 📅 22 Feb 2026
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What food cost percentages are normal in hospitality?

A 6% reduction in food cost percentage equals €30,000 extra profit annually for a €500,000 restaurant. Most operators think 35-40% food cost is acceptable, but...

⏱️ 3 min read 👁️ 247 📅 21 Feb 2026
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How do I see which dishes make the most profit?

Most restaurant owners think their bestsellers are their biggest moneymakers. They're usually wrong. A dish that flies off the menu can drain your profits while...

⏱️ 3 min read 👁️ 246 📅 21 Feb 2026
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What is a good margin on group arrangements?

Too many restaurants lose money on group bookings without realizing it. The hidden costs of arrangements eat away at profits faster than you'd expect. A healthy...

⏱️ 2 min read 👁️ 246 📅 21 Feb 2026
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How do I calculate profit margin per dish?

What's the real money-maker on your menu? The profit margin per dish reveals exactly how many euros you keep after deducting ingredient costs. This figure matte...

⏱️ 5 min read 👁️ 246 📅 21 Feb 2026
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How do you choose between a round price and a...

Menu pricing directly impacts both your profit margins and customer perception of your restaurant. Most operators face the same dilemma: round prices (€25.00) v...

⏱️ 3 min read 👁️ 245 📅 22 Feb 2026
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What is a healthy profit margin on drinks in a food...

The Riverside Bistro went from barely breaking even to €163,800 annual profit by fixing one thing: their drink margins. They weren't tracking pour sizes, hadn't...

⏱️ 3 min read 👁️ 245 📅 21 Feb 2026
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How can I organize my menu based on profitability?

A local bistro increased their monthly profit by €3,200 simply by moving their lamb shank from the bottom of page two to the top right corner. Most restaurants...

⏱️ 2 min read 👁️ 244 📅 22 Feb 2026
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How do I calculate how much revenue I need per month?

Picture this: it's Tuesday afternoon and you're staring at an empty dining room, wondering if you'll make enough this month to cover rent. Most restaurant owner...

⏱️ 3 min read 👁️ 244 📅 21 Feb 2026
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How do I calculate an average purchase price when prices...

Ingredient costs bounce around more than a pinball these days. Your beef supplier charges €8/kg one week, then €9.50 the next. You need one solid average price...

⏱️ 3 min read 👁️ 244 📅 21 Feb 2026
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What's the difference between gross margin and net margin?

Your restaurant could be bleeding money even with perfect ingredient costs. Gross margin shows profit after direct costs like ingredients, while net margin reve...

⏱️ 2 min read 👁️ 243 📅 21 Feb 2026
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How can I use food cost to support menu changes?

Managing a menu without food cost data is like driving blindfolded – you might reach your destination, but you'll crash along the way. Food cost percentages rev...

⏱️ 3 min read 👁️ 241 📅 22 Feb 2026
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How can I use these figures in conversations with my bank?

Your bank doesn't care about your passion for cooking - they want cold, hard numbers. Food cost data and margin analyses prove you're running a business, not ju...

⏱️ 3 min read 👁️ 240 📅 22 Feb 2026
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How do I calculate back from price including VAT to cost...

Converting menu price to cost price accurately prevents costly miscalculations that can destroy your restaurant's profitability. Many entrepreneurs forget VAT i...

⏱️ 2 min read 👁️ 239 📅 22 Feb 2026
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How can I make dishes with low food cost stand out?

Your most profitable dishes are probably hiding in plain sight. Low food cost items generate serious profit margins, yet customers gravitate toward the flashies...

⏱️ 3 min read 👁️ 239 📅 22 Feb 2026
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How do I set a fixed portion size for each dish in my...

Restaurants lose an average of €47,000 annually due to inconsistent portion sizes. Your chef serves 200 grams of steak Monday, 300 grams Tuesday - same taste, w...

⏱️ 2 min read 👁️ 238 📅 27 Feb 2026
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How do I determine the price of a daily soup?

Daily soup pricing can make or break your profit margins. Many kitchens underestimate costs by forgetting cream, herbs, and garnishes. You'll discover how to ca...

⏱️ 2 min read 👁️ 238 📅 22 Feb 2026
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How do I calculate cost price when working with liters?

Most restaurants struggle with liquid cost calculations because they purchase by the liter but serve by the portion. Converting from bulk liquid purchases to in...

⏱️ 3 min read 👁️ 238 📅 21 Feb 2026
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How do I use portion control as a tool to reduce food waste?

Why do restaurants throw away profit with every plate they serve? Most food waste doesn't happen in the bin—it happens on the plate through oversized portions....

⏱️ 4 min read 👁️ 228 📅 27 Feb 2026
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