10 formulas for margin, pricing, and average check
- Gross margin per dish = selling price - dish variable cost.
- Food cost % = food cost / food sales x 100.
- Contribution margin = selling price - total variable cost.
- Minimum markup = selling price / plate cost.
- Target price = plate cost / target food cost.
- Average check = total sales / number of checks.
- Revenue per seat = sales / seat count.
- Revenue per service hour = shift sales / shift hours.
- Ideal mix = item units sold / total category units.
- Defense price = current cost x minimum multiplier.
Use these formulas together. A dish that sells well but carries weak contribution margin can quietly choke cash generation.