Tap Free course · 25 minutes · Managers, chefs, owners
GP and menu pricing
Work out gross profit the right way, price to a target with Irish VAT, and spot a weak category before it costs you the month.
How it works. Read the lessons, take the quiz, print a certificate for your training file. Pass mark is 80%. Nothing is stored; the certificate is made on your screen.
Lessons
What GP is and isn't
Gross profit (GP) is sales minus the cost of what you sold, as a percentage of sales. In Irish hospitality, sales are counted before VAT, because VAT belongs to Revenue. Food VAT is 9%; alcoholic drinks are 23%.
GP% = (net sales − cost of sales) ÷ net sales × 100.
Pricing to a target
Price before VAT = plate cost ÷ (1 − target GP). A €5.40 plate at 70% GP needs €18.00 before VAT, which is €19.62 with 9% VAT. Round to €19.95 and check the GP at the rounded price (70.5%). The free menu price calculator does both steps.
Typical targets
Targets vary by venue, but common working ranges in Irish pubs and restaurants are: food 65 to 72%, draught beer 65 to 72%, spirits 75 to 82%, wine 68 to 75%, soft drinks 80%+. Set your own targets from your rent, wages and energy, then hold each category to them weekly.
Finding the leak
Count stock weekly by category. Cost of sales = opening stock + purchases − closing stock. If draught GP drops five points in a week, the causes are usually wastage, over-pouring, a line clean not logged, or a price change not put through the till. The Stocktake & GP Tracker shows the variance against target per category.
Quiz
5 questions. Pick one answer each.