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Food cost analysis
Actual versus theoretical food cost, recipes, wastage and stock shortages.
Profit programme
Financial analysis and profitability — from turnover to operating profit
Food cost, margins by category, pricing, waste reduction, budgeting and management reporting. We focus on what genuinely makes a difference to the bottom line.
Who it is for
- Restaurants with full tables but low profits
- Owners who need evidence to support a price increase
- Businesses preparing a budget or planning an investment
Exactly what you will get
Margins by category
Which items make money and which just take up space on the menu.
Pricing and menu engineering
New prices and a menu structure designed to help guests accept price increases.
Budgeting and reporting
An annual budget, cash flow and reports the owner can read in five minutes.
How to calculate restaurant profitability – 5 figures you need to know
Without these metrics, you are running your business on gut feeling. With them, you know what to change first.
1.Food cost and beverage cost
Ingredient costs as a proportion of net sales. As a guide, 28–32 % for food and 18–24 % for drinks; a significantly higher figure points to issues with pricing, recipes or wastage.
2.Prime cost
Ingredients + wages, including statutory employer contributions. Above 65 % of sales, the business’s long-term viability is at risk.
3.Margins by item (menu engineering)
Which dishes sell well and make money, and which just take up space in the kitchen? Adjust your menu and prices accordingly.
4.Break-even point
The number of guests or level of sales you need each day to cover fixed costs. Without knowing this, you cannot make decisions about opening hours or staffing.
5.Sales per labour hour
Sales divided by hours worked. The quickest indicator of whether staffing levels match demand.
How we work together
- 01
Data collection
POS data, purchase prices, stocktakes and labour costs.
- 02
Analysis
Quantifying losses, margins and weaknesses in your offering.
- 03
Action
Pricing, menu adjustments, supplier changes and waste control.
- 04
Measurement
Reviewing the impact on margins and profit after an agreed period.
Results you can see in the numbers
- Higher margins without losing guests
- Less waste and fewer stock shortages
- Reporting to support decision-making
Frequently asked questions
Will we lose guests if we raise prices?
Usually not, if menu engineering is done properly. Prices are adjusted by different amounts according to the price elasticity of each item.
Do you need access to our accounts?
Exports from your POS system and a breakdown of purchases and labour costs are all we need. We treat your data as confidential.
Free initial consultation
45 minutes, with no obligation and a clear outcome. We will tell you whether financial performance is where you should start, or whether something else takes priority.