F&B revenue is a crucial indicator for hotels to see how well their restaurant and catering are performing. Many hoteliers don't know exactly what portion of their total revenue comes from food and beverage, causing them to miss opportunities. In this article you'll learn step-by-step how to calculate this percentage and what common benchmarks are.
What exactly is F&B revenue?
F&B stands for Food & Beverage - all income from food and drinks in your hotel. This includes:
- Restaurant revenue (breakfast, lunch, dinner)
- Room service
- Bar and lobby bar
- Banqueting and events
- Minibar revenue
- Catering for external customers
The basic formula
You calculate the F&B revenue percentage like this:
F&B % = (Total F&B revenue / Total hotel revenue) × 100
💡 Example:
Hotel De Gouden Leeuw had last month:
- Room revenue: €180,000
- Restaurant revenue: €45,000
- Bar revenue: €12,000
- Banqueting: €18,000
Total F&B revenue: €45,000 + €12,000 + €18,000 = €75,000
Total hotel revenue: €180,000 + €75,000 = €255,000
F&B percentage: (€75,000 / €255,000) × 100 = 29.4%
Common benchmarks by hotel type
The F&B percentage varies significantly by hotel type:
- Business hotels: 20-30% (mainly breakfast and lunch)
- Leisure hotels: 25-35% (more dinner and bar)
- Resort hotels: 35-50% (all-inclusive concepts)
- Boutique hotels: 30-45% (restaurant as a draw)
- Budget hotels: 10-20% (minimal F&B facilities)
⚠️ Note:
A low F&B percentage doesn't have to be bad. Budget hotels deliberately focus on rooms. A high percentage can actually mean your room prices are too low.
Account for seasonal fluctuations
F&B percentages vary by season. Therefore also calculate:
- Monthly percentage: to see trends
- Quarterly average: for strategic decisions
- Annual average: for benchmarking
💡 Example seasonal difference:
Beach hotel De Zeemeeuw:
- Summer (July): F&B 42% (lots of terrace and events)
- Winter (January): F&B 28% (fewer guests, more business travelers)
- Annual average: F&B 35%
RevPAR vs F&B balance
Also look at the relationship between room income and F&B:
- High room prices + low F&B: focus on accommodation
- Lower room prices + high F&B: restaurant as a draw
- Both high: premium positioning
Include F&B profitability
Note: revenue percentage says nothing about profit. F&B often has lower margins than rooms:
- Rooms: 70-85% gross margin
- F&B: 60-75% gross margin
- Alcohol: 75-85% gross margin
⚠️ Note:
A hotel with 40% F&B revenue can make less profit than a hotel with 25% F&B revenue if F&B margins are low.
Include external catering or not?
External catering (weddings, corporate events for non-hotel guests) counts toward F&B revenue, but affects your percentage:
- Include it: gives complete picture of F&B performance
- Don't include it: shows pure hotel-F&B ratio
Many hotels report both figures: with and without external catering.
How do you calculate F&B revenue percentage? (step by step)
Gather all F&B revenue figures
Add up all income from food and drinks: restaurant, bar, room service, banqueting, minibar and any external catering. Use figures excluding VAT for an accurate picture.
Calculate total hotel revenue
Add room revenue and F&B revenue together. Don't forget other income such as spa, parking or meeting rooms. These figures also excluding VAT.
Divide F&B by total and multiply by 100
Use the formula: (F&B revenue / Total revenue) × 100. The result is your F&B percentage. Compare this with benchmarks for your hotel type.
✨ Pro tip
Track not just the percentage, but also absolute F&B revenue per available room (F&B RevPAR). This gives a better picture of your F&B performance regardless of occupancy rate.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
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Frequently asked questions
What is a good F&B percentage for my hotel?
This depends on your hotel type. Business hotels often sit around 20-30%, leisure hotels 25-35%, and resorts can reach 35-50%. More important than the percentage is the profitability of your F&B.
Should I include external catering in F&B revenue?
Both approaches are correct. External catering gives a complete picture of your F&B performance, but without external catering you see the pure hotel-F&B ratio. Preferably report both figures.
Why is my F&B percentage so low compared to other hotels?
A low percentage can mean you have high room prices (good) or that your F&B facilities are underperforming. Look at absolute F&B revenue per available room for a better picture.
How often should I calculate this percentage?
Calculate it monthly to see trends and recognize seasonal fluctuations. For strategic decisions use the quarterly average, for benchmarking use the annual average.
Should I include VAT in the calculation?
Always calculate excluding VAT for an accurate picture. F&B has 9% VAT in the Netherlands (alcoholic beverages 21%), rooms 9%. By calculating excluding VAT you compare actual business performance.
📚 Sources consulted
- EU Verordening 852/2004 — Levensmiddelenhygiëne (2004) — Official source
- EU Verordening 853/2004 — Hygiënevoorschriften voor levensmiddelen van dierlijke oorsprong (2004) — Official source
- EU Verordening 1169/2011 — Voedselinformatie aan consumenten (2011) — Official source
- NVWA — Hygiënecode voor de horeca (2024) — Official source
- NVWA — Allergenen in voedsel (2024) — Official source
- Codex Alimentarius — International Food Standards (2024) — Official source
- FSA — Safer food, better business (HACCP) (2024) — Official source
- BVL — Lebensmittelhygiene (HACCP) (2024) — Official source
- Warenwetbesluit Bereiding en behandeling van levensmiddelen (2024) — Official source
- WHO — Foodborne diseases estimates (2024) — Official source
Food Standards Agency (FSA) — https://www.food.gov.uk
The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.
Written by
Jeffrey Smit
Founder & CEO of KitchenNmbrs
Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.
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