The restaurant numbers every owner should understand (but most don’t)

Most restaurant owners work extremely hard. Long hours, constant pressure, nonstop decisions. Yet many operate without clarity on the numbers that actually determine whether the business survives.

Not sales. Not likes. Not foot traffic.

The numbers that matter are quieter, less visible, and often misunderstood.

Revenue is not a performance metric

Revenue tells you how much money comes in. It does not tell you whether the business is healthy.

Two restaurants with the same revenue can have completely different outcomes. One builds cash and stability. The other bleeds silently while appearing successful from the outside.

Without context, revenue is just noise.

Food cost percentage is not enough

Food cost percentage is often treated as the ultimate indicator of control. In reality, it’s incomplete.

A “good” food cost percentage can hide:

• over-portioning
• waste
• poor recipe discipline
• unprofitable menu items

What matters is not only how much food costs overall, but where and why it costs that much.

Theoretical vs actual usage is where truth lives

Every dish has a theoretical cost. Based on its recipe and portions, there is a clear expectation of what should be consumed.

Actual usage tells a different story.

The gap between these two numbers explains most margin problems in restaurants. When this gap isn’t measured, owners are forced to guess. When it is measured, decisions become obvious.

Margin per item matters more than popularity

Some dishes sell extremely well and still destroy profit.

Others sell less but contribute disproportionately to margins.

Without understanding margin per item, menus are optimized for volume instead of sustainability. Over time, this shifts the business toward harder work for lower returns.

Channels change everything

Dine-in, takeaway, and delivery are not the same business.

Each channel has:

• different packaging needs
• different commissions
• different operational costs

Treating them as equal creates distorted margins. Understanding channel-specific performance is essential to pricing and menu strategy.

Control comes from visibility, not effort

Most struggling restaurants don’t lack effort. They lack clarity.

When owners see:

• what each item should earn
• what it actually earns
• where costs drift

decisions become calmer, faster, and more confident. Stress decreases. Strategy improves.

Understanding numbers is not about accounting

This isn’t about becoming a finance expert.

It’s about knowing enough to stop flying blind.

Restaurants that last aren’t the ones that work the hardest. They’re the ones that understand what’s really happening behind the numbers.

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Clear numbers don’t restrict creativity. They protect it.

Seeing these numbers clearly is the first step toward taking control of margins and decision-making. Kyze gives exactly that. And more.