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.

DishMargin per dishMargin %Sold in the monthContribution
Sirloin steak$11.6058%150$1,740.00
Pasta$8.0080%300$2,400.00
Salad$5.6070%120$672.00
Salmon$8.0036%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.

Questions

Does raising the price always improve the contribution?

Not always: if far fewer units sell, the contribution can drop. Check the sales over the following weeks.

Do drinks count?

Yes. They usually have a high margin and a lot of volume, so they often contribute more than several dishes together.