Revenue fluctuates dramatically throughout your operating day. Most restaurants bleed money during slow lunch shifts while generating solid profits during peak dinner hours. Calculating profitability by day part reveals exactly where you're making money and where you're losing it.
What is profitability per day part?
Profitability per day part shows how much profit you generate during specific operating hours. This data helps you decide whether to open for lunch, extend evening hours, or close during unprofitable periods.
💡 Example:
Restaurant operating lunch (12:00-15:00) and dinner (18:00-22:00):
- Lunch revenue: €450 with 25 guests
- Dinner revenue: €1.200 with 60 guests
- Fixed costs per day: €300 (rent, staff, utilities)
Question: Which day part generates the most profit?
Gather your daily costs
You'll need these figures for each day part:
- Revenue per day part - total sales during those hours
- Variable costs - ingredients, beverages (food cost)
- Staff costs per day part - scheduled labor expenses
- Fixed costs - rent, utilities, insurance (allocated across day parts)
Calculate the profit margin per day part
Use this formula for day part profitability:
Profit day part = Revenue - Variable costs - Staff costs - (Fixed costs ÷ number of day parts)
💡 Example calculation:
Lunch (12:00-15:00):
- Revenue: €450
- Food cost (30%): €135
- Staff: €120 (1 chef + 1 server, 3 hours)
- Fixed costs: €150 (€300 ÷ 2 day parts)
Lunch profit: €450 - €135 - €120 - €150 = €45
💡 Example calculation:
Dinner (18:00-22:00):
- Revenue: €1.200
- Food cost (28%): €336
- Staff: €240 (2 chefs + 2 servers, 4 hours)
- Fixed costs: €150 (€300 ÷ 2 day parts)
Dinner profit: €1.200 - €336 - €240 - €150 = €474
Compare profit margin percentages
Raw profit numbers don't tell the complete story. Calculate your profit margin percentage too:
Profit margin % = (Profit ÷ Revenue) × 100
- Lunch: (€45 ÷ €450) × 100 = 10%
- Dinner: (€474 ÷ €1.200) × 100 = 39.5%
⚠️ Note:
Low absolute profit can still represent a decent margin if revenue is proportionally low. Analyze both metrics together.
Analyze the results
This example reveals that:
- Dinner significantly outperforms lunch - both in raw profit (€474 vs €45) and margin (39.5% vs 10%)
- Lunch barely breaks even - only 10% margin
- Fixed costs burden lunch disproportionately - low revenue can't absorb overhead
One of the most common blind spots in kitchen management is assuming all operating hours contribute equally to profitability. But these calculations expose the truth about your revenue streams.
Actions based on results
Armed with these insights, you can make strategic decisions:
- Optimize lunch: Reduce staff, simplify menu, or raise prices
- Expand dinner: Extend hours, add tables, improve service
- Cut costs: Schedule staff more efficiently during slow periods
- Close unprofitable day parts: If lunch consistently loses money
💡 Practical example:
Most restaurants close between 15:00-17:00 because this period often generates losses:
- Too few customers for full capacity
- Fixed costs continue running
- Staff idle time increases
Closing saves labor costs and lets you focus resources on profitable periods.
Weekly monitoring
Day part profitability varies significantly by weekday:
- Monday lunch typically underperforms Friday lunch by 40-60%
- Saturday evening often delivers peak profitability
- Sunday brunch can surprise with strong margins
Track performance for at least 4 weeks to identify patterns. Seasonal changes, weather, and local events also impact day part performance. Tools like KitchenNmbrs can automate this tracking and provide real-time profitability insights.
How do you calculate profitability per day part? (step by step)
Gather revenue and cost data per day part
Note for each day part (lunch, dinner, etc.) your revenue, food cost, staff costs, and a portion of your fixed costs. Use figures from at least a week for a reliable picture.
Calculate profit per day part
Subtract all costs from revenue: variable costs (food cost), staff costs for that day part, and your share of fixed costs. The remainder is your profit for that day part.
Calculate profit margin percentages
Divide profit by revenue and multiply by 100 for the percentage. This gives you the profit margin per day part, allowing you to fairly compare different day parts.
Analyze and optimize
Compare the margins and absolute profits. Day parts with low margins you can optimize by lowering costs or raising prices. Highly profitable day parts you can expand.
✨ Pro tip
Analyze your weekend lunch performance over the past 6 weeks - if Saturday-Sunday lunch generates 25%+ margins while weekday lunch stays under 15%, consider closing Monday-Wednesday lunch service. You'll cut labor costs by roughly 30% while maintaining your profitable lunch periods.
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
Should I allocate fixed costs equally across all day parts?
Yes, distribute fixed costs like rent and insurance proportionally. Two day parts each get 50%, three day parts get 33% each. Unequal allocation makes some periods appear artificially profitable.
What if staff work across multiple day parts?
Calculate the actual hours each employee works per day part and allocate their wages accordingly. Even if someone works lunch and dinner, split their cost based on time spent in each period. This gives you accurate labor costs per day part.
How do I handle seasonal fluctuations in day part performance?
Track performance for a full year to establish seasonal baselines. Summer lunch might be profitable while winter lunch loses money due to tourism patterns. Adjust your operating schedule seasonally rather than making permanent changes based on short-term data.
📚 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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