Monitoring food costs and tracking profit margins are essential for profitability in hospitality. Clover Analytics gives businesses the tools to manage food spending and maintain a healthy margin in business.
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Food costs reflect the percentage of revenue spent on ingredients. The formula is:
Food Cost Percentage = (Cost of Goods Sold / Total Food Sales) x 100
If a business spends £1,800 on ingredients and makes £6,000 in food sales, its food cost is 30 percent. Monitoring this figure is essential for maintaining a sustainable margin in business. Every increase in supplier prices, wastage, or portion inconsistency can affect profitability.
Clover Analytics simplifies this with tools to:
According to UKHospitality, around 40 percent of UK restaurants are operating at or below the break-even point, highlighting the financial strain on the industry.1 Additionally, projections suggest that UK food inflation could rise by up to 4.9% in 2025, driven by higher business costs from new government measures, including increased employment and regulatory expenses.2
Understanding gross profit helps, but it’s the margin in business at the item level that drives long-term decisions. Clover Analytics calculates:
Data and insights collected through this analysis empower businesses, such as pubs and restaurants, to evaluate menu profitability. For example:
Using this information, business owners and managers can:
Advanced data analysis tools, such as Clover Analytics, support responsiveness and help make informed decisions. Businesses can respond quicker to shifts in demand or rising food costs, gaining a competitive edge.
Manual tracking is slow and prone to errors. Clover POS systems integrate with inventory and accounting tools to automate:
Clover Mini and Clover Flex enable staff to view data on-the-go or at the counter, while Clover Station Duo offers deeper dashboard reporting.
Real-time reporting ensures decisions about food costs and margin in business are based on facts, not estimates.
Maintaining control over food costs requires consistent oversight. Clover Analytics supports best practices such as:
Set food cost targets
Conduct menu analysis
Monitor waste and portion sizes
Negotiate supplier contracts
Design menus strategically
Train staff on cost awareness
Clover Flex and Clover Mini make it simple to implement these practices on-site and in real time.
Tracking food costs and improving margin in business are core drivers of profitability in hospitality. Clover Analytics equips businesses with the tools to:
Whether operating a café, restaurant, or food truck, businesses using Clover POS solutions build healthier profit margins and sustainable growth. Contact us today to ensure accurate food costs and margins tracking.
Bibliography
1 Financial Times: UK restaurant sector hit by cost of living and Covid legacy
2 Reuters: UK food inflation could hit nearly 5% in 2025, says industry researcher
