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Top Tips for Food Costing and Achieving Gross Profit


If you are not achieving your desired Gross Profit then you need to consider the following points:

1)      Do you have a security issue in your business? – check that food is not being given away – keep an eye on staff, regulars etc Lock away valuable foods. Use internet security cameras where necessary.

2)      Are you satisfied that that your prices are high enough?

3)      Are your portions to large or is portion control out of hand? – cost out the size of portions. Measure carefully. Instruct staff accordingly.

4)      Are you wasting too much food? – prepare meal amounts

5)      Are your staff meals too generous? – use low cost items, don’t give choice from menus – Don’t let live in staff eat ad-lib.

6)      Are you satisfied that your suppliers are giving you the best deal? – shop around and make sure you are getting the best deal – ask for discount.

7)      Could home cooked food create more profit?

8)      Cost items carefully. Compare home cooked food with a higher GP (to allow for time, wage and power costs) as against bought in.


Dish Costings:


Top Tips:

1)      Build in costs of cooking oil.

2)      Allow for miscellaneous items such as salt, pepper, vinegar, sauces etc.

3)      Higher cooked weights are generally higher than cooked weights – important to remember when working out portion sizes for roasts.

4)      Incorrect portion sizes will affect your Goss profit margins.

5)      Check plates for surplus food being returned to the kitchen. – a good indicator as to where portion size / garnish can be reduced.

6)      Have correct size kitchen utensils. (e.g. ladles, spoons etc) to achieve accurate portion control.

7)      To help keep costs down, where possible bulk out recipes with lower priced items.

8)      Remember to keep an eye on costs and pack sizes – these can vary often – particularly seasonal items such as fruit and vegetables.


To achieve the correct profit margins use the Pub Marketing Expert Gross Profit Calculator.


To help you further use the simple formula below to work out further food cost calculations:


SPEND PER HEAD        =             Sales



GROSS PROFIT          =         Sales (Exc VAT) – Cost of Sales


SELING PRICE            =         Cost x 100 + VAT

                                                        % Cost


COST PRICE              =         Selling Price x 100 (100 – GP%)



% COST                    =         Cost x 100

                                           Selling Price


% PROFIT                  =         Profit x 100

                                            Selling Price / Sales


WAGE %                     =         Wage + National Insurance x 100



GP %                         =         Selling Price – Cost Price x 100

                                                           Selling Price

 Top Marketing Tips:


Put Your Business Online:

Having a website for your business has now become a necessity. More and more customers are using broadband which means that computers are being used to search for pubs: eating venues, accommodation and function facilities. It is now far easier for customers of all ages to search online and compare pubs than via traditional directories. Not only can bookings be increased - but think of the time savings: customers are researching pubs online - if you don't provide them with the information they require - then you will lose them to your competitors. A good website will help reduce wasted calls will make your pub a far more efficient business. Make sure your menus, seasonal offerings, opening times and directions are all online.

How Does Your Pub Rate On On-line Directories?

Many online directories are free - but many pub owners don't search and update their details and information. Again this means you will simply lose business to your competitors. It couldn't be easier: enter your pub name and location into the search engine box (Google search etc) and you may be very surprised what appears. This is so easy to do and in fact this is exactly what your potential customers do everyday - if your pub is not featured - or is incorrectly featured or reviewed then you will certainly be losing out.

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