Yes Chefo — Kitchen Economics Quick Guide

📈 What Is Gross Profit (GP)?

Gross Profit is what’s left after the food cost is removed from the selling price. It’s the money available to cover all your other costs — wages, rent, utilities — and eventually produce a profit. A chef’s job is to protect it.

The GP Formula

Selling Price

−

Food Cost

=

Gross Profit

GP% = (Selling Price − Food Cost) ÷ Selling Price × 100

Worked Example — Good

Sell price€22.00

Food cost€5.50

Food cost %25%

GP€16.50 — 75%

Worked Example — Problem

Sell price€18.00

Food cost€7.20

Food cost %40%

GP€10.80 — 60%

Chef TipFood cost % and GP% always add up to 100%. A 30% food cost = 70% GP. If you know one, you know the other. Most chefs track food cost — but operators track GP. Learn to think in both.

🎯 Target GP Benchmarks by Category

Gastropub Mains

68–72%

Higher food cost justified by portion size

Fine Dining Mains

72–78%

Premium pricing, controlled portions

Starters

72–80%

Smaller portions, lower food cost

Desserts

75–85%

High-margin opportunity — often underpriced

Pizza

75–85%

Low food cost, high volume

Sharing Sides

78–88%

Excellent margin, easy execution

Bread & Nibbles

80–90%

Pure margin — never undercharge

Cocktails

80–90%

The highest margin product on any menu

Soft Drinks

85–92%

Hospitality’s best kept secret

Wine by Glass

65–75%

Lower but high volume — push the list

Chef TipIf your dessert GP is below 75%, you’re either overcomplicating them or underpricing them. Desserts are the most profitable section on most menus — treat them accordingly.

▶ Understanding Your Menu at a Glance

DishSell PriceFood CostGP

Ribeye Steak€28€9.8065%

Chicken Supreme€22€4.4080%

Seafood Risotto€24€9.6060%

Mushroom Risotto€19€3.4282%

Lamb Rack€32€14.4055%

Truffle Fries (side)€8€0.9688%

The Lamb Rack may be your most impressive dish — but it’s costing you. The Truffle Fries make more per sale. A balanced menu needs both high-GP workhorses and premium anchor dishes.

⚠ Why Kitchens Lose Money

Menu Problems

✗Too many dishes — impossible to control cost

✗Low-margin dishes dominating the menu

✗Underselling desserts and sides

✗Not reviewing prices against rising costs

✗Complicated garnishes that add cost not value

Kitchen Problems

✗Inconsistent portion sizes at the pass

✗Poor prep systems creating waste

✗Over-ordering and fridge wastage

✗Dishes that look profitable but drain labour

✗No costing discipline — guessing portion costs

Chef TipA dish doesn’t need the cheapest ingredients to be profitable. It needs strong perceived value and controlled, consistent execution. A €3 portion of perfectly cooked chicken can command €22 — a €12 piece of lobster cannot always command €40.

💡 High Margin Thinking

Always Push These

✓Sides & sharing plates

✓Bread & pre-meal nibbles

✓Desserts — especially soufflé, tart, mousse

✓Cocktails & non-alcoholic drinks

✓Coffee & petit fours

Smart Dish Choices

✓Vegetarian & plant-based mains

✓Pasta, risotto, gnocchi — cheap ingredients, premium pricing

✓Whole cheaper cuts — slow-cooked, elevated

✓Daily specials using surplus stock

Watch These

▷Lobster, king scallops, foie gras — high cost, price resistant

▷Tasting menus — labour intensive

▷Complex garnishes — time cost eats GP

▷Truffle, wagyu, caviar — know your margins

🧠 Menu Psychology

The Premium Anchor

Put your most expensive dish on the menu. Most guests won’t order it — but it makes everything else feel better value. A €68 whole fish makes a €28 steak feel accessible.

Perceived Value

A dish feels expensive when it looks expensive. Beautiful plating, seasonal ingredients, confident writing, and portion control all signal value — even on lower food cost dishes.

High-Profit Placement

Eyes land top-right first on a printed menu. On digital, they scroll top to bottom. Put your high-GP dishes in those prime positions — not your prestige dishes.

Menu Flow & Upsell

Design the menu so sides, sauces, and desserts feel natural to order. A well-structured menu upsells silently. Train FOH to suggest pairings — €4 bread with €0.40 food cost adds up fast.

Fewer Choices = More Spend

Research consistently shows that smaller menus increase average spend. Fewer options = less indecision = more ordering. A tight menu also reduces waste and improves consistency.

Price Framing

Never use €signs on a menu — they make guests think about cost. “22” feels less painful than “€22.00”. Round numbers also outperform “.99” pricing in restaurant settings.

⏳ Prep vs Profitability

Some dishes look profitable on paper but destroy labour during service. Labour cost is the invisible tax on every dish. If a starter requires 12 minutes of prep and 4 minutes at the pass — you need to understand what that costs you.

Ask Before Every Dish

▷How long does this take to prep per batch?

▷How many components does it have?

▷Can it be plated in under 90 seconds at the pass?

▷What happens to this dish on a busy Saturday?

▷Does it create waste from other dishes?

High-Profit, Low-Labour Thinking

✓Shared ingredients across dishes

✓Sauces that batch-produce easily

✓Components that prep ahead without quality loss

✓Dishes that plate in one step at the pass

Chef TipYour labour cost target is typically 28–35% of revenue. When food cost and labour combined exceed 65%, most kitchens run at a loss after overheads. Know your combined cost of goods percentage — it’s the number that actually matters.

📋 Daily Kitchen Questions Every Chef Should Ask

Which dishes actually make the most money — not just sell the most?

Which dishes slow service and increase kitchen stress disproportionately?

What prep creates the most waste this week?

What sells well but underperforms financially?

Are we leaving GP on the table with bread, sides, or desserts?

Have we reviewed our prices since our food costs changed?

What’s our actual combined food & labour cost this week?

Which specials could become permanent high-margin dishes?