Whether you’re managing a busy pub, an independent restaurant or a growing chain, our GP Calculator is made specifically for the industry to help you quickly and accurately calculate your GP for individual items or your entire menu.
1. Enter your total sales revenue in the Total Sales field.
2. Enter your total cost of sales in the Total costs field.
The calculator will then generate the gross profit% of your business.
3. Does your business have a required gross profit %? Enter this in the Target Margin field.
The calculator will tell you if you’re above or below your target%.
1. Enter the total sales revenue generated from the product in the total sales field.
2. Enter the cost you paid for the product in the Total Costs field.
The calculator will then generate your gross profit% of that product.
1. Enter your potential selling price for the product in the Total Sales field.
2. Enter the cost you paid or expect to pay for the product in the Total Costs field.
The calculator will tell you what gross profit margin % you would achieve with that price.
3. Do you have a target margin % in mind? Enter this in the Target Margin field.
The calculator will tell you if you’re above or below your target%.
A 10% over-portion on steaks could reduce GP by 2-3% across your menu in just a month.
Businesses with team members trained in upselling cocktails see average GP growth of 7% compared to those focused on traditional bar staples.
Products like premium mixers and cocktails carry higher margins. Train staff to promote mixers with spirits or upgrade to cocktails.
Invest in equipment to aid measuring and portion control (e.g., correct, updated glassware, vacuum sealers, weights, scales) to avoid overuse of ingredients.
Speak to your stock taker and use your stocktaking reports and EPOS reports (if relevant) to understand how much of each product on average you are selling on a weekly basis and phase out slow-moving products that are taking up storage.
Use the FIFO (First In First Out) method and where possible, work to keep 10 days’ worth of stock for high-margin products but scaling down on those less impactful.
Staff Costs: Avoid relying on fixed staff rotas and instead keep an eye on any changes to peak days and times to make sure your weekly rotas are aligned. Think about the capabilities of your team when planning your rota to make sure anyone less experienced has the support they need and your strongest up-sellers are there for high-margin shifts. Download your free rota costing template.
Supplier Costs: Use time in quieter periods to review your suppliers and assess if their services/products are still needed, to shop around for alternate suppliers or re-negotiate your contracts, focusing on rebates or bulk discounts.
Ensure discounts are only applied when you can ensure a high volume of sales to compensate for the reduced GP%. Consider restricting to one-off events or when selling through perishable or underperforming items. Instead of discounts, consider offering free add-ons using products with minimal cost to you, like fries, sauces, premium condiments, or offering loyalty cards that reward high-margin purchases.
Customers are also sensitive to sudden price changes, which can lead to reduced sales volume and even losing a customer to a competitor. Blanket increases also fail to account for the GP potential of individual products.
Instead, analyse your sales and margin to identify which products will have the greatest impact with the least risk with a raised selling price. Incrementally raising prices for example on premium or under-scrutinised items like sides, desserts or mixers can often achieve this with minimal customer impact. Take a look here for further guidance on raising your prices.
To ensure you are having the most impact on your GP and to reduce customer impact,
Target High GP products and Upsell: Consider packaged drink categories and group your products from low to high GP (Good, Better, Best). Apply your price increase on those with the highest GP and focus on increasing sales volumes. Effective upselling through team training on your menu and how to frame “Good, Better, Best” into the everyday conversation with customers is key.
Target High Volume, Low-Sensitivity Products: Mixers, soft drinks, sides or bar snacks often receive less price scrutiny when purchased as part of a bundle. A modest increase here can add up quickly without customer impact.
Applying price increases incrementally is less likely to attract negative attention.
Less, More Often: Increase prices slightly every 6-12 months rather than a significant hike all at once. Applying small increases incrementally and checking the volume results (e.g. £4.90-£5.10) can still deliver improvements.
Example
Initial Price and GP
*Current pint price: £4.90 with GP of 65%
*Weekly Volume: 400 pints
*Revenue: £1,960
Apply Increase (To £5.10)
*Adjusted pint price: £5.10, GP: 67%
*Expected volume drop (5%): 380 pints
*Revenue: £1,938 (Minimal loss, higher GP%)
The way you price items can influence how customers feel about value.
Avoid Round Numbers: Instead of £5, price an item at £4.95 or £5.10 to make the increase feel less significant.
Bundle High-Margin Items: Offer drink & snack combos or meal deals that include higher GP% items to balance individual price increases.
Be open with your customers where price increases are noticeable, making sure to communicate the rationale and if relevant, where your customers' experience will benefit as a result.
Invest in the customer’s experience: Small upgrades like refreshed menus, décor, seating, lighting, televisions or sound systems make price increases mutually beneficial for you and your customers. Highlight the new offerings rather than the price change itself.
Prepare the team: Brief relevant team members of higher impact price changes and make sure they’re trained in handling conversations positively by highlighting quality and experience as justification.
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