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Margin, pricing, and average check

50 Essential Restaurant Formulas — by PlatePlatform


10 formulas for margin, pricing, and average check

  1. Gross margin per dish = selling price - dish variable cost.
  2. Food cost % = food cost / food sales x 100.
  3. Contribution margin = selling price - total variable cost.
  4. Minimum markup = selling price / plate cost.
  5. Target price = plate cost / target food cost.
  6. Average check = total sales / number of checks.
  7. Revenue per seat = sales / seat count.
  8. Revenue per service hour = shift sales / shift hours.
  9. Ideal mix = item units sold / total category units.
  10. 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.