Margin per dish and contribution
The margin per dish is the price before tax minus the recipe cost. The contribution is that margin times the units sold in the month: what that dish puts in to pay expenses and leave a profit.
Example with four dishes
The pasta has the best percentage and also sells a lot: it contributes the most. The steak has a lower percentage but leaves a lot of money per plate. The salmon barely contributes: low margin and few sales.
| Dish | Margin per dish | Margin % | Sold in the month | Contribution |
|---|---|---|---|---|
| Sirloin steak | $11.60 | 58% | 150 | $1,740.00 |
| Pasta | $8.00 | 80% | 300 | $2,400.00 |
| Salad | $5.60 | 70% | 120 | $672.00 |
| Salmon | $8.00 | 36% | 60 | $480.00 |
What to do with each dish
Look after the ones that sell a lot and leave a good margin, and keep them visible. Those with a good margin that sell little: improve them on the menu or have waiters recommend them. Those that leave little and sell little: review price and recipe, or take them off.