{
    "name": "Restaurant Gross Margin Calculator",
    "url": "https://calculators.geekmidst.com/calculators/restaurant-gross-margin-calculator",
    "markdown": "https://calculators.geekmidst.com/calculators/restaurant-gross-margin-calculator.md",
    "category": "Food & hospitality",
    "description": "Calculate a restaurant’s gross profit and gross margin from food and beverage sales and their cost of sales, with separate food and drinks margins.",
    "summary": "Gross margin is the share of sales left after paying for the food and drink that was sold. Food and beverages are shown separately because their margins usually differ a lot.",
    "also_called": [
        "F&B gross profit calculator",
        "Restaurant GP calculator"
    ],
    "applies_to": "Worldwide",
    "last_updated": "2026-10-29",
    "computation": "Results are computed in the visitor’s browser on the HTML page. This API describes the calculator; it does not compute results.",
    "inputs": [
        {
            "name": "food_sales",
            "label": "Food sales",
            "type": "number",
            "default": "60000"
        },
        {
            "name": "bev_sales",
            "label": "Beverage sales",
            "type": "number",
            "default": "20000"
        },
        {
            "name": "food_cost",
            "label": "Food cost of sales",
            "type": "number",
            "default": "18000"
        },
        {
            "name": "bev_cost",
            "label": "Beverage cost of sales",
            "type": "number",
            "default": "5000"
        },
        {
            "name": "currency",
            "label": "Currency",
            "type": "currency",
            "default": "USD"
        }
    ],
    "outputs": [
        {
            "key": "gross_margin_pct",
            "label": "Gross margin",
            "format": "percent"
        },
        {
            "key": "gross_profit",
            "label": "Gross profit",
            "format": "currency"
        },
        {
            "key": "cost_pct",
            "label": "Combined cost of sales",
            "format": "percent"
        },
        {
            "key": "food_margin_pct",
            "label": "Food gross margin",
            "format": "percent"
        },
        {
            "key": "bev_margin_pct",
            "label": "Beverage gross margin",
            "format": "percent"
        }
    ],
    "formula": {
        "text": "Gross profit = (Food sales + Beverage sales) − (Food cost + Beverage cost);  Gross margin = Gross profit ÷ Total sales × 100",
        "variables": {
            "Sales": "revenue excluding sales tax",
            "Cost of sales": "cost of the food or drink consumed, ideally from stock counts"
        }
    },
    "worked_example": {
        "inputs": {
            "food_sales": "60000",
            "bev_sales": "20000",
            "food_cost": "18000",
            "bev_cost": "5000",
            "currency": "USD"
        },
        "steps": [
            "Total sales = 60,000 + 20,000 = 80,000; total cost = 18,000 + 5,000 = 23,000.",
            "Gross profit = 80,000 − 23,000 = 57,000, and 57,000 ÷ 80,000 = 71.25%.",
            "Food: (60,000 − 18,000) ÷ 60,000 = 70%. Drinks: (20,000 − 5,000) ÷ 20,000 = 75%."
        ],
        "result": "The restaurant keeps 71.25% of sales as gross profit: 70% on food and 75% on drinks."
    },
    "interpretation": "Gross margin only covers ingredients. Labour, rent and other overheads still have to come out of it, so track it alongside prime cost (cost of sales plus labour). A shift in sales mix towards drinks raises the overall margin even if neither margin changes.",
    "assumptions": [
        "Cost of sales covers only food and drink consumed; labour is excluded."
    ],
    "limitations": [
        "This is not net profit."
    ],
    "rules": null,
    "faqs": [
        {
            "question": "Is gross margin the same as 100% minus food cost %?",
            "answer": "For food alone, yes: a 30% food cost leaves a 70% gross margin. With drinks included, the combined margin is weighted by each category’s sales."
        },
        {
            "question": "Why are drinks margins usually higher?",
            "answer": "Drinks often need less preparation and have lower ingredient cost relative to price, but this varies by product and venue."
        }
    ],
    "sources": [],
    "related": [
        {
            "name": "Food Cost Percentage Calculator",
            "url": "https://calculators.geekmidst.com/calculators/restaurant-food-cost-percentage-calculator"
        },
        {
            "name": "Restaurant Break-even Covers Calculator",
            "url": "https://calculators.geekmidst.com/calculators/restaurant-break-even-covers-calculator"
        },
        {
            "name": "Profit Margin Calculator",
            "url": "https://calculators.geekmidst.com/calculators/profit-margin-calculator"
        }
    ],
    "disclaimer": null,
    "publisher": "GM¹X CalcVerse"
}