Gastro Calculator
Gastro Knowledge
Running a successful hospitality business means more than just good food and good service. The economic side of a hospitality operation must also be right.
In Gastro Knowledge we explain important topics around food cost, selling prices, staff costs, fixed costs and hospitality calculation in a clear and practical way.
Calculation
What does a dish really cost?
A dish costs a hospitality business more than just its ingredients.
Of course, every calculation starts with the food cost. But that still doesn't fully reflect the actual costs of a restaurant.
Staff must be paid. Kitchen and dining room require energy. Rent or lease must be earned. Add to that insurance, fees, administration, cleaning, repairs and numerous other ongoing costs.
That's why a selling price well above the food cost doesn't automatically mean a dish generates sufficient profit.
A transparent calculation helps to look at the selling price economically and not set it purely by feel.
Food cost is only part of the total costs.
Costs
Which costs need to be considered in the hospitality industry?
- 1
Food cost
Food, beverages, ingredients and other goods directly needed for the product.
- 2
Staff costs
Wages, employer contributions, vacation, illness and other personnel costs.
- 3
Rent and lease
Costs for restaurant, kitchen, storage, terrace and other operating areas.
- 4
Energy
Electricity, gas, heating, water and other energy costs.
- 5
Insurance
Business insurance and other coverage.
- 6
Fees
Card payments, POS systems, software, platforms and other fees.
- 7
Administration and other costs
Tax consulting, cleaning, maintenance, repairs, marketing, administration and other operating costs.
- 8
Profit and reserves
A business should not only cover its running costs. It also needs sufficient profit to build reserves and finance future investments.
Profitability
How professional price calculation works
- 1
Step 1
Determine food cost
Determine as precisely as possible which direct goods costs actually arise for one portion.
- 2
Step 2
Set calculation markup
Based on your own cost structure and the desired economic result, a suitable calculation markup is determined.
- 3
Step 3
Calculate net selling price
Food cost and markup result in a calculated net selling price.
- 4
Step 4
Determine gross price
The applicable VAT rate is then taken into account.
Note: The optimal calculation can differ from business to business. There is no single markup that is equally right for every restaurant, every product and every location.
Practice
Practical example: Calculating a dish
Choose a dish and look at a sample calculation.
Select a dish
Food cost breakdown
| Burger bun | €0.80 |
| Burger patty 140g | €1.45 |
| Lettuce | €0.08 |
| Tomato | €0.10 |
| Sauce | €0.25 |
| Onion | €0.10 |
| Butter | €0.10 |
| Spices | €0.15 |
| Fries | €1.25 |
| Frying oil | €0.10 |
| Position | Wert |
|---|---|
| Total food cost | €4.38 |
| Markup | 375 % |
| Net selling price | €20.81 |
| Gross (7 %) | €22.27 |
What does this example mean?
The calculated selling price is well above the pure food cost. However, this does not mean that the difference remains entirely as profit.
From the amount earned, staff, rent, energy, insurance, fees, administration and other operating costs must be financed, among other things.
Sample calculation – not a general price recommendation