Gross Margin

Gross profit as a percentage of sales, showing how much is left after the cost of goods sold to cover everything else.

Gross margin is what remains of each pound of sales after COGS:

• Gross margin % = (sales − COGS) ÷ sales × 100

It tells you whether your pricing and food cost are healthy before labour and overheads are considered. A slipping gross margin usually points to rising supplier prices or loose portioning. See how it fits on the P&L.