gross margin = gross profit/sales revenue, which is an important indicator to measure the profitability of catering enterprises and reflect the grade standard.

gross profit = revenue-cost

profit = revenue-cost-expense

Here is a confusing concept, namely "cost" and "expense". Broadly speaking, the cost of restaurant operation can be divided into variable cost and constant (fixed) cost. Variable cost is the cost that changes with the increase or decrease of sales revenue, such as raw and auxiliary materials, fuel and some water and electricity. Constant (fixed) costs are the expenses that an enterprise will incur regardless of whether there is sales behavior, such as rent, wages, lighting, aquaculture and elevator electricity. For stores, the cost is mainly the cost of food and ingredients consumption. If the processing link of the store is ignored and the processing process is regarded as a retail process, then the income of the store is obtained by selling goods, and the cost is the value of the sold goods. For the central kitchen, if the goods are delivered after secondary processing, they should be included in the production cost. It should be noted that the purchase amount is not the cost.

expenses: personnel salaries can be included in production costs, while managers' salaries should be included in management expenses. From the financial point of view, expenses are divided into management expenses, financial expenses and sales expenses. Among them, financial expenses include bank remittance, transfer fees, fees generated by taxes, etc. Sales expenses include advertising expenses, printing expenses of publicity color pages, etc. Management expenses are all expenses except cost and the above two expenses.