Your restaurant or pub might be packed every night, with food sales looking strong. But busy-ness does not always equal profitability. In the Irish hospitality industry, food margins are notoriously tight, and it's frighteningly easy to be "busy fool" — working hard while losing money on every plate that leaves the kitchen.
The losses aren't usually from one big event; they're a "death by a thousand cuts." They hide in your storeroom, in your supplier invoices, and on your menu. Here are the five most common warning signs that your business is leaking profit.
Sign 1: Your Gross Profit Margin is a Mystery If I asked you, "What was your actual food Gross Profit (GP) last month?" and your answer is anything other than a precise number (e.g., "68.4%"), you have a problem.
A "guesstimate" like "Oh, it's usually around 70%" is not good enough. The gap between your expected GP (what your menu should produce) and your actual GP (what's left after accounting for waste, theft, and errors) is where your profit disappears. If you aren't measuring this gap, you can't manage it.
Sign 2: Your Food Costs Fluctuate Wildly You look at your P&L statement, and your food cost percentage is 32% one month, 36% the next, and 30% the month after, even though your sales are relatively stable.
This volatility is a massive red flag. It means you have no control. It indicates that your purchasing, portioning, and waste are completely inconsistent. You're riding a financial roller coaster blindfolded, unable to plan or budget effectively because you don't know what your single biggest expense will be from one week to the next.
Sign 3: Your Supplier Invoices Are on "Auto-Pay" You trust your suppliers to deliver quality produce, and you should. But trusting them to manage your pricing is a costly mistake. "Price creep" is a common issue—the fillet steak you agreed to at €20/kg slowly inches up to €20.50, then €21. This "rounding up" on high-value items, or deviations from your agreed pricing, can siphon thousands of euros a year from your bottom line.
If your invoices are just being glanced at and filed, you are almost certainly being overcharged on some items.
Sign 4: Your "Star" Dish Might Be a Loser That best-selling burger or the signature seafood chowder that customers rave about might be the least profitable item on your menu. Why? Because you've never properly costed the plate.
You "guesstimated" the cost a year ago, but since then, the price of the bun, the beef, the cheese, and the lettuce has all increased. You may be actively losing money or making pennies on your most popular dish, while a less popular, high-margin dish sits unnoticed.
Sign 5: There's Always "Too Much" or "Not Enough" Stock Your walk-in freezer is packed so tight you can't see the back, or your line cooks are constantly having to "86" a menu item on a busy Saturday.
Both of these are symptoms of the same disease: poor inventory management. Too much stock means your cash is tied up on a shelf, increasing the risk of spoilage and waste. Too little stock means you are actively losing sales and disappointing customers.
The Solution: A Single Source of Truth All five of these problems are symptoms of a lack of data. The solution to all of them is a single service: a regular, professional, and independent food stocktake.
A stocktake is not just a count. It's a complete financial audit that:
· Calculates your exact Gross Profit.
· Pinpoints why your costs are fluctuating.
· Audits your supplier invoices for overcharging.
· Provides the data needed for accurate plate costing.
· Optimises your stock holding levels.
This is precisely how Hospitality Partners can quantify any losses in your kitchen. We find the leaks so you can plug them.
Stop the leaks and start protecting your profit. Don't wait for a bad end-of-year report. Get a c