A chef running both a 50-seat bistro and weekend catering discovered his restaurant was barely breaking even while catering events generated 45% margins. Restaurant and catering operations demand completely different KPI frameworks due to their distinct cost structures. You need separate tracking systems to understand which part of your business actually makes money.
Why separate KPIs are needed
Restaurant and catering are two different businesses under one roof. Your restaurant runs on fixed costs and daily revenue. Catering works with projects, advance planning, and variable costs per event.
⚠️ Watch out:
Mixed figures give a distorted picture. A profitable restaurant can mask a loss-making catering operation, and vice versa.
Setting up restaurant KPIs
For your restaurant activities, focus on daily and weekly figures:
- Food cost %: Typical 28-35% for restaurants
- Average check value: Revenue divided by number of covers
- Occupancy rate: Occupied tables vs. total number of tables
- Revenue per square meter: Annual revenue divided by floor space
- Labor costs %: Usually 25-35% of restaurant revenue
💡 Example restaurant KPIs:
Bistro with 60 seats, open 6 days a week:
- Food cost: 31% (target: below 33%)
- Average check: €28.50
- Occupancy: 65% (target: 70%)
- Revenue/m²: €3,200 per year
Check these figures weekly.
Setting up catering KPIs
Catering works per project and per person. Your key KPIs are:
- Food cost per person: Usually 20-30% (lower due to economies of scale)
- Total project costs %: Food + labor + transport, typical 55-70%
- Average order value: Total catering revenue divided by number of events
- No-show factor: Percentage of guests who don't attend (usually 5-10%)
- Profit margin per event: Net profit divided by total project revenue
💡 Example catering KPIs:
Corporate lunch for 80 people at €32.50 per person:
- Total revenue: €2,600
- Food cost: €650 (25%)
- On-site staff: €480 (18.5%)
- Transport/materials: €180 (7%)
- Total costs: €1,310 (50.4%)
Net margin: €1,290 (49.6%)
Fairly allocating shared costs
Some costs are shared between restaurant and catering. Divide these based on revenue ratio or usage - the kind of thing you only learn after closing your first month at a loss:
- Kitchen costs: Divide by revenue ratio
- Chef salary: 70% restaurant, 30% catering (example)
- Kitchen rent: By usage hours ratio
- Utilities: By revenue ratio or production hours
Dashboard setup for both activities
Create one overview with both business units side by side. Check these figures monthly:
💡 Dashboard example:
Restaurant (March):
- Revenue: €45,000
- Food cost: 32% (€14,400)
- Average check: €31.20
- Net margin: 18%
Catering (March):
- Revenue: €12,000 (4 events)
- Food cost: 24% (€2,880)
- Average event: €3,000
- Net margin: 42%
When adjustments are needed
Set alarm bells for both activities:
- Restaurant food cost above 35%: Check menu prices and portions
- Catering margin below 35%: Raise prices or lower costs
- Restaurant occupancy below 50%: Marketing or menu adjustment
- Catering no bookings: Start sales activities
Systems that track both activities separately prevent double work. You immediately see which unit performs better and where you need to focus.
How do you set up KPIs for restaurant + catering? (step by step)
Separate your administration
Create separate cost centers for restaurant and catering. Divide shared costs (rent, chef salary) by revenue ratio or usage. This gives you a fair picture of both activities.
Determine your core KPIs per activity
Restaurant: food cost %, average check, occupancy. Catering: cost per person, project margin, average order value. Focus on maximum 5 KPIs per activity to stay organized.
Set target values and alarm bells
Determine for each KPI what 'good' is and when you need to take action. For example: restaurant food cost above 35% = alarm, catering margin below 35% = action needed. Check monthly and adjust where necessary.
✨ Pro tip
Track your restaurant's weekly labor-to-sales ratio alongside catering's cost-per-head for 30 days before adding other metrics. These two numbers reveal 80% of your profitability issues without overwhelming your daily operations.
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 always keep restaurant and catering separate?
Yes, for your KPIs you should. Both have different cost structures and margins. Mixed figures give a distorted picture of which unit is performing well or poorly.
How do I split the chef's salary between both activities?
Divide by time or revenue ratio. For example: 70% restaurant, 30% catering. Or calculate how many hours he spends on each unit and divide the salary proportionally.
Which KPI is most important for catering?
Net margin per event. Catering has higher margins than restaurant (40-50% vs 15-25%), so if your margin drops below 35% you're likely losing money on that project.
Can I use the same food cost target for both?
No. Restaurant food cost is usually between 28-35%. Catering can be lower (20-30%) due to economies of scale and less waste. Set separate targets.
📚 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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