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Restaurants 

Managing a Restaurant and Managing the numbers is a skill you can learn, here is some informatio to know better about them.

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What Is Food Cost Percentage?

Food cost percentage shows how much of your restaurant's sales is spent on food.
 

First, calculate your COGS (Cost of Goods Sold):

Beginning inventory + Purchases − Ending inventory = COGS
 

Then calculate:
 

COGS ÷ Sales × 100 = Food Cost Percentage

For example, if your food cost is €1,125 and your sales are €4,000:

€1,125 ÷ €4,000 × 100 = 28%
 

This means 28% of your sales went toward the food you used during that period. A lower percentage generally means more of your sales are left to cover other costs and profit.

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How to Improve Your Food Cost Percentage

If your food costs are too high, there are several simple ways to improve them:

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  • Review your prices: A small price increase can improve your margin.

  • Look at your ingredients: Find lower-cost alternatives where quality won't suffer.

  • Compare suppliers: Check whether you are getting competitive prices from your wholesalers.

  • Review your menu: Promote dishes that have better food margins.

  • Check portion sizes: Look at what customers leave behind. If food is regularly wasted, you may be able to reduce portions or change the dish.

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The goal isn't simply to spend less. It's to make sure the money you spend on food is helping you generate enough sales and profit.

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How to Make Your Menu More Profitable

A profitable menu is not just about selling more. It is about selling the right dishes.

Look at which dishes are popular and which ones make the most profit. Keep promoting the dishes that perform well, improve the ones that sell but have low margins, and consider removing dishes that are neither popular nor profitable.

The key is to use your sales and food-cost data to make menu decisions instead of guessing. The article recommends reviewing menu performance regularly and making adjustments based on what the numbers show.

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Restaurant Profit Margin: What Should Your Restaurant Be Making?

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Do you know how much of every €1 in sales your restaurant actually keeps? Your sales can look strong while your profit remains surprisingly small.
Understanding your restaurant’s profit margin helps you see whether your pricing and costs are working together—or quietly eating into your profits.
 

This guide explains how to calculate your net profit margin, what your revenue and expenses are really telling you, and how to identify the costs that have the biggest impact on profitability. It also looks at typical restaurant profit margins, with reported averages ranging from 2% to 6%, while a 5%–15% margin can be considered a good range depending on the type of food business.
 

You’ll also learn practical ways to improve your margin by looking at food costs, labor, operating expenses and menu pricing, rather than simply trying to increase sales.
 

Use the profit margin calculator to see your numbers and find out how much of your sales is actually becoming profit.

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