How do I monitor my gross margins?
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Gross margin is the profit in the Food and Beverage Departments after deducting direct costs of sales (eg, the purchase cost of food and beverages) from revenue.
Tracking your gross margin over time enables you to monitor how successful you are in controlling costs in Food and Beverage Departments.
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Gross margin percentage measures the profit a business makes on each sale as a percentage of revenue.
Use our Gross Margin Calculator to calculate your gross margin percentages and compare with industry averages
Remember!
Compare your own gross margins on a regular basis with:
- previous periods
- target margins to be achieved
- industry averages
Track your results over time.
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