Gross margin
How is product gross margin calculated?
Gross profit is the selling price per portion minus the portion cost. Gross margin is that profit divided by the selling price. It is not the restaurant’s net profit.
Formula
Gross profit = selling price − portion cost. Gross margin % = gross profit ÷ selling price × 100.
Rent, labour, energy and tax are not in this ratio.
Dine-in and delivery
You can add a commission, packaging and an extra amount on top of the same portion cost. You type the figures. They are not pulled from a platform.
Example: selling price 25.00 TRY, portion cost 1.00 TRY. On delivery, a 10% commission and 2.00 TRY packaging give a commission of 2.50 TRY, 22.50 TRY after commission, profit of 19.50 TRY and a margin of 78.00%. Food cost stays 4.00%. If the dine-in fields are blank, dine-in profit equals gross profit: 24.00 TRY, margin 96.00%.
Ingredient example
- 1 kg flour costs 40.00 TRY. The recipe uses 250 g.
- Line cost: 40.00 × (250 ÷ 1000) = 10.00 TRY.
- 10 portions. Cost per portion: 10.00 ÷ 10 = 1.00 TRY.
- Selling price 25.00 TRY. Food cost: 1.00 ÷ 25.00 = 4.00%.
- Gross profit: 25.00 − 1.00 = 24.00 TRY. Gross margin: 24.00 ÷ 25.00 = 96.00%.
Questions
What shows when gross margin is a loss?
If the selling price is below the portion cost, gross profit and margin are negative.
Does commission raise food cost?
No. Food cost looks at ingredient cost. Commission is deducted in the after-commission profit and the channel margin.
Source: Foodmarj. Updated 9 October 2026.