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Basic knowledge and formulas

Learn the fundamental formulas and calculation methods for hospitality.

What's the difference between gross profit and net...

Every restaurant owner who's ever stared at their P&L at 2 AM knows this feeling - great food costs, terrible bottom line. You're hitting 70% gross margins on p...

⏱️ 2 min read 👁️ 199 📅 21 Feb 2026
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How do I calculate my food cost percentage per month?

Most restaurant owners can't tell you their exact food cost percentage off the top of their head. That's a problem because this number directly shows how much o...

⏱️ 3 min read 👁️ 199 📅 21 Feb 2026
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What is the relationship between food cost and prime cost?

A popular bistro discovers their 28% food cost looks great on paper, but they're still losing money each month. The missing piece? Labor costs that push their c...

⏱️ 2 min read 👁️ 198 📅 27 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 👁️ 198 📅 22 Feb 2026
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How do I calculate the margin on a dish of the day?

Your Tuesday special with salmon costs €7.20 in ingredients and sells for €24.50—but are you actually making money? Most restaurant owners guess at their margin...

⏱️ 3 min read 👁️ 198 📅 21 Feb 2026
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How can I check if my menu generates enough profit?

Running a restaurant without tracking menu profitability is like driving blindfolded through rush hour traffic. You might survive for a while, but eventually yo...

⏱️ 2 min read 👁️ 197 📅 21 Feb 2026
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How do I compare dishes based on food cost?

Restaurants lose an average of €15,000 annually by not tracking which dishes actually make money. Your menu has hidden winners and losers, and the only way to s...

⏱️ 2 min read 👁️ 197 📅 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 👁️ 196 📅 27 Feb 2026
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How do I make sure my prices match your portion sizes?

Think of portion control like tuning an instrument – one small adjustment can make the difference between harmony and chaos. Many kitchens unknowingly serve ove...

⏱️ 3 min read 👁️ 196 📅 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 👁️ 196 📅 21 Feb 2026
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How do I recognize from my numbers that I'm too...

Most restaurant owners discover their over-dependence on a single dish only after it's too late. One supplier issue, seasonal change, or staff departure can tan...

⏱️ 3 min read 👁️ 195 📅 22 Feb 2026
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How do I teach my kitchen brigade to think about food costs?

Ten years ago, most kitchen teams cooked by instinct alone. Today's successful restaurants require chefs who understand that every extra gram of butter or overs...

⏱️ 3 min read 👁️ 195 📅 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 👁️ 195 📅 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 👁️ 194 📅 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 👁️ 194 📅 22 Feb 2026
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How do I calculate the cost per portion when using large...

Most restaurants cook individual portions while others prepare massive batches. Large pans create a costing nightmare since you're making 20 or 50 portions simu...

⏱️ 3 min read 👁️ 194 📅 22 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 👁️ 194 📅 22 Feb 2026
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How do I calculate my total monthly revenue?

Most restaurant owners think monthly revenue is just what their POS system shows - but that's only half the picture. You're missing thousands in catering, deliv...

⏱️ 3 min read 👁️ 194 📅 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 👁️ 193 📅 21 Feb 2026
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How do I calculate my food gross profit?

Food gross profit shows the difference between your selling price and ingredient costs. This number reveals how much you actually keep from each dish before oth...

⏱️ 2 min read 👁️ 193 📅 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 · 👁️ 1,505 times read
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2
How can I see if my profit comes mainly from drinks or food?
⏱️ 3 min · 👁️ 724 times read
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3
What is prime cost in the hospitality industry?
⏱️ 3 min · 👁️ 538 times read
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