Catering profit formula: (operating income - operating costs) ÷ operating income × 100%.

The catering industry is a highly competitive market, and calculating catering profit is very important for the industry to identify and solve problems in a timely manner. The formula for calculating profit in the restaurant industry includes gross sales margin and gross cost margin. The formula for calculating gross sales margin is (operating income - operating costs) ÷ operating income × 100%.

Operating revenue refers to the total income generated from the sale of food and beverage products and services at a restaurant, while operating costs refer to the costs incurred by the restaurant in preparing food and providing services. Based on the gross sales margin, once the operating revenue is higher than the operating costs, a certain amount of net profit will be earned after the calculation. On the contrary, if the operating cost is higher than the operating income, then the restaurant will face a loss.

Restaurants can measure and monitor restaurant profitability by calculating metrics such as gross profit, profit and cost ratio. Gross profit is defined as the sum of the restaurant's winnings from each transaction, which is the number that sits between revenues and costs.

Profit is defined as the net income earned by the restaurant during the course of its operations, including running water, total costs and total expenses. The cost ratio, on the other hand, is the ratio of the current month's costs plus the previous month's inventory, minus the current month's inventory, divided by the running water.

Notes on opening a restaurant

Selecting a good location requires consideration of factors such as surrounding foot traffic, competitors, and accessibility, which have a direct impact on a restaurant's business. The importance of choosing a location cannot be overstated, even if a big brand brings its own traffic, the location will affect sales.

Decoration is one of the important issues in opening a restaurant. The elegance of the store environment directly affects the customer's impression of the restaurant, so the quality of the decoration is crucial. The choice of decoration style should be in line with the positioning of the restaurant, rather than blindly pursuing luxury.