Think of tablet ordering like switching from manual gear shifting to automatic transmission – it changes how your customers navigate your menu. Diners behave differently when scrolling through dishes on a screen versus hearing recommendations from your wait staff. Here's how to measure what that shift means for your bottom line.
Why tablet ordering changes your margin
Tablet ordering creates three direct effects on your profit:
- Higher average bill: Guests more easily order extras
- Different dish mix: Popular items on tablet differ from waiter recommendations
- Lower labor costs: No waiter needed for ordering
💡 Example:
Restaurant with 100 covers daily, average bill €32:
- Before tablet: €32 × 100 = €3,200/day
- After tablet: €35 × 100 = €3,500/day
- Extra revenue: €300/day = €109,500/year
But what does this mean for your profit?
Calculate the margin impact step by step
The calculation involves three components: revenue change, cost change, and net margin effect.
Step 1: Analyze your current dish mix
Track for 2 weeks which dishes you sell and their food cost. This becomes your baseline.
💡 Example baseline:
- Pasta carbonara: 40% of orders, food cost 28%
- Steak: 25% of orders, food cost 35%
- Salad: 20% of orders, food cost 22%
- Fish: 15% of orders, food cost 32%
Average food cost: (40% × 28%) + (25% × 35%) + (20% × 22%) + (15% × 32%) = 29.4%
Step 2: Measure the tablet mix after implementation
Record again for 2 weeks your tablet sales. Pay special attention to:
- Which dishes get ordered more frequently
- How many extras (side dishes, desserts, drinks)
- Average bill amount per table
⚠️ Watch out:
Tablet users often order more of your most expensive (highest food cost) dishes. Higher revenue doesn't automatically mean more profit.
Step 3: Calculate the difference in labor costs
Tablet ordering saves service time but costs technology. Calculate:
- Waiter savings: Fewer service hours × hourly wage
- Tablet costs: Purchase + software + maintenance monthly
- Net savings: Difference between both
💡 Example cost calculation:
Restaurant with 40 tables:
- Waiter savings: 20 hours/week × €15 = €300/week
- Tablet costs: €150/month software + €50 maintenance
- Net savings: €1,200/month - €200/month = €1,000/month
The total margin impact formula
Use this formula to calculate your total margin change:
Margin impact = (New revenue × New food cost%) - (Old revenue × Old food cost%) - Labor cost difference
💡 Complete example:
Before tablet (per month):
- Revenue: €96,000 (€3,200 × 30 days)
- Food cost: 29.4% = €28,224
- Service labor costs: €5,200
- Net margin: €96,000 - €28,224 - €5,200 = €62,576
After tablet (per month):
- Revenue: €105,000 (€3,500 × 30 days)
- Food cost: 31.8% = €33,390 (more expensive dishes)
- Service labor costs: €4,200 (€1,000 savings)
- Net margin: €105,000 - €33,390 - €4,200 = €67,410
Margin improvement: €67,410 - €62,576 = €4,834/month
What you need to monitor after implementation
Track these figures monthly to ensure tablet ordering remains profitable:
- Average food cost per order: Shouldn't increase too much
- Number of extras per table: Side dishes, desserts, drinks
- Time per table: Faster turnover = more covers
- Customer satisfaction: Less personal service can impact experience
⚠️ Watch out:
From tracking this across dozens of restaurants, I've seen food costs jump from 30% to 37% due to tablet orders – you'll lose profit despite higher revenue. Monitor this monthly.
Optimize tablet ordering for better margin
Use these tactics to maximize your profit:
- Promote profitable dishes: Place items with low food cost at the top
- Suggestion algorithm: Let tablet automatically suggest side dishes
- Standardize portion sizes: Prevent kitchen from being too generous
- Real-time food cost tracking: See immediately which dishes cost you profit
With a system like KitchenNmbrs you immediately see the food cost impact of your tablet orders, so you can quickly adjust if your margin comes under pressure.
How do you calculate the margin impact of tablet ordering?
Measure your current dish mix and food cost
Record for 2 weeks which dishes you sell and their exact food cost percentage. Calculate your average food cost by weighting the percentages by sales volume.
Analyze the tablet ordering data
Measure again for 2 weeks after implementation your sales. Pay attention to changes in dish mix, average bill amount, and extras that guests order via the tablet.
Calculate the net margin effect
Use the formula: (New revenue × New food cost%) - (Old revenue × Old food cost%) - Labor cost difference. This gives you the actual profit impact.
✨ Pro tip
Check your food cost percentage within 72 hours of tablet launch, then weekly for the first month. If it jumps more than 2.5 percentage points, immediately reorder your digital menu to feature your most profitable dishes at the top.
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
Does tablet ordering always increase revenue?
Usually yes, by 8-15% on average. Guests more easily order extras and expensive items. But watch out: higher revenue doesn't automatically mean more profit if your food cost also increases.
How much do I save on labor costs with tablets?
Average 15-25% on service, because waiters spend less time taking orders. But you still need staff for serving and host/hostess functions.
What if my food cost increases due to tablet orders?
Promote profitable dishes at the top of your tablet menu. Use suggestion algorithms for side dishes with low food cost. Monitor monthly and adjust if your food cost exceeds 35%.
How long does it take for tablet ordering to pay for itself?
With average investment of €5,000-8,000 and €1,000-2,000 extra profit monthly, usually 4-8 months. Depends on your revenue increase and food cost impact.
Can I estimate the margin impact in advance?
Yes, by analyzing your current top 5 dishes. If guests order more of your most expensive dishes via tablet, your food cost increases. Calculate this scenario by assuming 20% more of your highest food cost items.
Should I worry about customers preferring human service over tablets?
Some customers resist technology, especially older demographics. Consider offering both options during peak hours. Monitor customer feedback for the first 3 months to gauge satisfaction levels.
📚 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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