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Basic knowledge and formulas

Learn the fundamental formulas and calculation methods for hospitality.

How do I set prices when working with market prices?

Most restaurant owners struggle with pricing because they copy competitors without knowing their own costs first. You might think you're being competitive, but...

⏱️ 3 min read 👁️ 228 📅 22 Feb 2026
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How do I read a supplier delivery report?

Your supplier's delivery report holds the key to accurate food costing, but most restaurant owners miss critical price changes and discrepancies that eat into p...

⏱️ 4 min read 👁️ 227 📅 22 Feb 2026
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How do I know if I have too many different products on...

Too many different dishes on your menu can undermine your profit without you realizing it. Each extra dish costs time, inventory and attention - but does it gen...

⏱️ 3 min read 👁️ 227 📅 22 Feb 2026
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How do I calculate my restaurant's break-even point?

Your restaurant's break-even point is the exact number of covers needed to avoid losing money each month. Most owners operate without knowing this crucial figur...

⏱️ 3 min read 👁️ 227 📅 21 Feb 2026
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What's the difference between food cost and selling price?

Ever wonder why some dishes seem profitable until you actually crunch the numbers? Food cost is what you pay for ingredients, while selling price is what guests...

⏱️ 2 min read 👁️ 227 📅 21 Feb 2026
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What is a good margin on a wine pairing?

Most restaurants think wine pairing margins are just about the bottle cost - that's completely wrong. Your pairing profitability depends on hidden costs like ex...

⏱️ 2 min read 👁️ 227 📅 21 Feb 2026
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How do I calculate the selling price of a lunch dish?

Setting lunch prices is like tuning a guitar - one string off and the whole melody sounds wrong. Too many lunch spots wing their pricing and watch profits disap...

⏱️ 4 min read 👁️ 227 📅 21 Feb 2026
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How do I calculate the margin on a package with food and...

67% of restaurants underestimate their true package costs by ignoring VAT differences between food and alcohol. Food carries 9% VAT while drinks get hit with 21...

⏱️ 3 min read 👁️ 225 📅 21 Feb 2026
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What all falls under prime cost in my kitchen?

Are you tracking the one number that makes or breaks restaurant profitability? Most restaurant owners obsess over food costs while their labor expenses quietly...

⏱️ 3 min read 👁️ 222 📅 21 Feb 2026
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How do I make sure my prices are both attractive and...

Some restaurants price dishes so low they lose money on every sale, while others set prices so high they drive customers away. Most restaurant owners rely on gu...

⏱️ 3 min read 👁️ 220 📅 22 Feb 2026
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How do I determine my minimum selling price based on...

Your minimum selling price determines whether you make or lose money on each dish. Some restaurants nail their pricing and build solid profit margins, while oth...

⏱️ 3 min read 👁️ 219 📅 27 Feb 2026
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What are normal beer margins in hospitality?

Most operators obsess over food costs while their beer margins quietly leak money. Draft beer typically delivers 70-85% margins, yet many venues don't even trac...

⏱️ 2 min read 👁️ 218 📅 21 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 👁️ 217 📅 21 Feb 2026
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How do I calculate the cost price of a buffet in my...

I'll admit it - I used to guess at buffet pricing and wondered why my margins kept shrinking. Buffets are trickier than regular dishes because guests control th...

⏱️ 3 min read 👁️ 214 📅 21 Feb 2026
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How do I read my cash register report with margins in mind?

Your cash register report holds vital margin data that most restaurant owners completely ignore. Revenue might climb while margins plummet due to rising costs o...

⏱️ 2 min read 👁️ 213 📅 22 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 👁️ 212 📅 21 Feb 2026
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How often should you check the food cost of your menu?

Restaurants that monitor food costs weekly lose an average of 3.2% more profit than those checking daily. Your margins erode silently while you focus on service...

⏱️ 3 min read 👁️ 210 📅 21 Feb 2026
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What's the difference between revenue and margin in...

A packed Friday night brings in €3,200, but your bank account barely budges by Monday morning. Revenue shows how busy you were, margin reveals how much you actu...

⏱️ 2 min read 👁️ 205 📅 21 Feb 2026
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What is waste in a restaurant?

Most restaurant owners don't realize they're throwing away 10-15% of their profits every single day. Waste isn't just the moldy tomatoes you toss in the bin. It...

⏱️ 3 min read 👁️ 205 📅 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 👁️ 200 📅 22 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 · 👁️ 1,819 times read
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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...
⏱️ 2 min · 👁️ 558 times read
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