What's Your Number

In this blog post we are going to talk about the extremely exciting and fun topic of numbers! You know, that ancient invention that helps us understand why your fantasy lost by 1 point because of a late minute sack! Well that part is true but we will not be talking about fantasy football, I am still a little sore about that. But we will be talking about numbers that pertain to your operation as a food operator, whether you are running a food truck or national multi-unit chain. When you think about your operation there are some fundamentally recognized numbers that every operator should be aware, and if not you then someone on your team. How do I know this, well I started out as an accounted, ready to count for the rest of my life and preparing to take the CPA exam when fortune decided that my path would change from accounting to programming. But I never lost site of those numbers and as my career moved through the food service industry I saw the importance of those numbers and how every executive team that I worked for or with always wanted to look at some of the same numbers that I am sharing with you here. You should know them, they help you look at your operation from a different angle and hopefully when you hit a rough patch, you will know exactly why. So let's get started.

Food Cost %

What it is: Food Cost Percentage is the ratio of how much you spend on food compared to how much revenue you generate from selling it.

Formula: (Total Food Costs ÷ Food Sales) × 100

Why it matters: This number tells you how efficiently you’re managing your inventory and pricing. A high food cost percentage can mean you're over portioning, wasting product, or not charging enough. In most operations, a healthy target is around 25–35%, depending on your concept.

Gross Margin %

What it is: Gross Margin Percentage represents how much money you’re keeping after covering just your product (food and beverage) costs.

Formula:(Food Sales – Food Cost) ÷ Food Sales × 100

Why it matters: This is the flip side of food cost — it shows the profitability of your menu. A higher gross margin means you’re making more profit per sale. It’s also a great indicator of whether your pricing and vendor deals are working in your favor.

Average Ticket Sales

What it is: The average amount a customer spends per transaction.

Formula: Total Sales ÷ Total Number of Orders

Why it matters: This number reveals how well you're upselling and whether your pricing structure matches your customer behavior. If your ticket average is low, you might need to introduce combos, sides, or limited-time offers to encourage larger orders. Small increases here — even just $1 more per order — can make a big difference to your bottom line over time. We have a saying in the industry, your last dollar is your most profitable. That means that if you need a $20 ticket average to cover all of your costs then every dollar over that $20 dollars is pure net profit! Let's get that average ticket sales up!

Check Mix

What it is: Check Mix shows you what customers are actually buying — the blend of items that make up your average sale.

Why it matters: Understanding your check mix helps you identify top sellers, underperforming items, and what combinations drive the most profit. You might find that your most popular item isn’t your most profitable — knowing this helps you build smarter promotions and optimize your menu layout. A perfect example is top seller like a steak sandwich that leaves you with a gross margin of only 25% so that when you think about labor cost and operating cost you might think you should get rid of it. But in your check Mix you find that people almost always purchase grilled cheese sandwiches which give you an 80% gross margin. Keep it! But if customers are only buying the steak sandwich then you should remove it from the menu. See, check mix analysis is important.

Break Even Point

What it is: The amount of revenue you need to cover all your expenses (food, labor, rent, etc.) without making a profit or loss.

Formula (Simple): Fixed Costs ÷ (Average Ticket × Gross Margin %)

Why it matters: This number tells you how many sales you need just to stay afloat. Once you pass this point, you're making real profit. Knowing your break-even can keep you grounded during slower weeks and focused on goals during busy ones.