Most restaurant owners think monthly budget checks are just about comparing revenue numbers. That's only scratching the surface. You need to track costs and margins too, or you'll get blindsided by year-end surprises.
The 5 most important figures to check monthly
A monthly check doesn't need to be overwhelming. Focus on these 5 core numbers that directly impact your bottom line.
1. Total revenue vs. budget
Compare your actual revenue with what you budgeted. A deviation of more than 10% calls for action.
💡 Example:
Restaurant De Smaak, March budget:
- Budgeted: €45,000
- Actual: €38,500
- Deviation: -14.4%
Action needed: investigate why revenue is falling short
2. Food cost percentage
Your food cost should stay stable between 28-35%. If this rises structurally, your profit's leaking away through ingredients.
Formula: (Total ingredient purchases / Revenue excl. VAT) × 100
⚠️ Note:
Always calculate with revenue excl. VAT. Otherwise your food cost will appear lower than it actually is.
3. Labor cost percentage
Labor costs (including employer contributions) shouldn't exceed 30-35% of your revenue.
- Add up all wages and salaries
- Include employer contributions (approximately 25% of gross salary)
- Divide by revenue excl. VAT
4. Number of covers vs. expectations
Fewer guests means lower revenue, but also a different cost structure. Check if you've adjusted your staffing accordingly.
💡 Example:
Bistro Het Plein, March comparison:
- Expected: 1,200 covers
- Actual: 950 covers
- Average check: €40.53 (was €37.50)
Fewer guests, but higher average check. Calculate net effect on revenue.
5. Fixed costs vs. budget
Rent, energy, insurance and other fixed costs can rise unexpectedly. Check if everything still aligns with your budget.
- Energy costs (can fluctuate significantly)
- Rent and service charges
- Insurance and subscriptions
- Equipment depreciation
How often and when to check?
Always schedule your monthly check around the same date, preferably in the first week of the new month. That way you'll have all data from the previous month complete.
💡 Example schedule:
Every first Tuesday of the month:
- 9:00-10:00: Gather figures
- 10:00-10:30: Do calculations
- 10:30-11:00: Compare with budget
- 11:00-11:30: Determine action items
Signals that you need to adjust
These signals indicate you need to take action to get back on track.
- Food cost above 35%: Check supplier prices and portion sizes
- Labor costs above 35%: Evaluate scheduling and productivity
- Revenue more than 15% below budget: Adjust marketing or menu
- Fixed costs rise unexpectedly: Find alternatives or renegotiate
⚠️ Note:
One bad month can be a fluke. Only intervene if you see the same deviation for two consecutive months.
Digital tools for checking
Manual checks take time and are error-prone. Many restaurant owners use digital tools to track their figures.
From tracking this across dozens of restaurants, I've seen that tools like KitchenNmbrs automatically calculate your food cost per dish and track how you're performing against your goals. That saves time and gives you faster insight into deviations.
From checking to action
Checking alone isn't enough. Turn every monthly check into an action plan for the coming month.
- Which 2-3 points need immediate attention?
- What will you do differently next month?
- Who is responsible for which action?
- When will you check if the action had an effect?
How do you do a monthly check? (step by step)
Gather all financial data
Pull your revenue figures from your POS system, supplier invoices from your administration, and labor costs from your payroll. Make sure your data is complete for the entire month.
Calculate the key percentages
Calculate your food cost (purchases / revenue excl. VAT × 100) and labor cost percentage. Compare these with your target figures from the budget.
Compare with budget and previous months
Place your actual figures next to your budget and the figures from the same month last year. Deviations of more than 10% deserve extra attention.
Analyze the causes of deviations
Find out why figures deviate. Is it seasonal, a one-time expense, or a structural problem? This analysis determines your next steps.
Create an action plan for next month
Determine 2-3 concrete actions to correct deviations. Note who does what and when you'll check the effect.
✨ Pro tip
Schedule your monthly budget review for the 5th of each month at 10 AM sharp. This gives you enough time to collect all previous month's data while keeping the review fresh in your mind for quick adjustments.
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
How often should I check my figures?
Monthly is the standard for a complete check. But checking your revenue weekly is also smart to spot trends early.
What if my food cost suddenly becomes much higher?
First check if suppliers have raised their prices. Then look at portion sizes and waste. Often it's one of these three factors causing the spike.
Should I account for seasonal differences in my budget?
Yes, definitely. Always compare with the same month last year, not just your annual average. Restaurants often have clear seasonal patterns that annual averages mask.
What do I do if multiple figures deviate at once?
Focus first on the biggest deviation in euros, not percentages. Fix the biggest leak first before tackling smaller problems.
How do I handle inventory adjustments in monthly checks?
Count your ending inventory and subtract it from purchases to get actual food cost used. Don't just use invoice totals or your numbers will be off.
What's the ideal profit margin I should target monthly?
Aim for 8-12% net profit margin after all expenses. Anything below 5% means you're barely breaking even and need immediate action.
Should I include tips in my labor cost calculations?
No, exclude tips from labor costs since they don't come from your budget. Only count wages, salaries, and employer contributions you actually pay.
📚 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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