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Basic knowledge and formulas

Learn the fundamental formulas and calculation methods for hospitality.

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 👁️ 263 📅 22 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 👁️ 262 📅 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 👁️ 260 📅 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 👁️ 256 📅 21 Feb 2026
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How do I handle rounding menu prices?

Smart menu pricing rounding can save you thousands in lost profit each year. Most restaurant owners round to "nice" amounts without calculating the impact on th...

⏱️ 2 min read 👁️ 241 📅 22 Feb 2026
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How do I determine a realistic waste percentage per product?

Most restaurants lose €3,000-5,000 annually by ignoring food waste in their cost calculations. Setting a realistic waste percentage helps you calculate your cos...

⏱️ 3 min read 👁️ 237 📅 21 Feb 2026
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How do I calculate if a premium ingredient still gives...

That €1.50 difference per portion could make or break your dish's profitability. You're eyeing those premium ingredients but wondering if your margins can handl...

⏱️ 3 min read 👁️ 236 📅 21 Feb 2026
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How do I read a P&L statement as a hospitality business...

A P&L statement reveals whether your restaurant generates profit or bleeds money. Most hospitality owners get these reports from their accountants but can't dec...

⏱️ 3 min read 👁️ 235 📅 22 Feb 2026
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How do I start tracking my food cost every month?

Food cost tracking forms the backbone of any profitable restaurant operation. Too many owners operate blind to their actual dish costs, bleeding money without r...

⏱️ 5 min read 👁️ 232 📅 22 Feb 2026
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How do I calculate the margin on seasonal dishes?

It's Monday morning and your asparagus just jumped from €4 to €8 per kilo overnight. Your weekend special that was printing money last week might now be losing...

⏱️ 2 min read 👁️ 227 📅 21 Feb 2026
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How do I calculate food cost when my portion sizes...

I'll admit it – managing food costs with inconsistent portions feels like trying to hit a moving target. Many restaurants serve 200 grams of steak today, 250 gr...

⏱️ 2 min read 👁️ 226 📅 27 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?
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2
What is the difference between food cost and cost price?
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What are typical margins on coffee and tea?
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