Menu Planning Tool

When to use this tool

Use it before changing a menu — food, drink or both — or before changing a single item, to forecast whether the change will be more profitable. You can also use it after a change, to check whether it actually paid off.

How to use it

1. Royalties / commission. If your business pays a royalty or commission on sales, toggle it on and set your rate (and whether it’s charged on net or gross sales). Leave it off if you don’t pay one.
2. VAT rate. Set this to your country’s VAT rate — the UK’s is currently 20%. Set it to 0% if VAT doesn’t apply to you.
3. Current menu. For each item, set whether it’s Food or Drink, then enter its cost (ex‑VAT), its sale price (inc‑VAT / gross) and how many you sold in the period. The comparison is only as good as these figures, so be accurate.
4. Proposed menu. Enter the menu you’re considering. Units sold should match your current menu for a like‑for‑like comparison — change them only if you’re forecasting more or fewer sales.
5. Budgeted cost of sales. Set your food and drink cost‑of‑sales targets (or switch the toggle to gross profit). Each menu is checked against your blended target — your food and drink targets combined, weighted by its food/drink mix — and the At‑a‑glance section shows whether it stays within budget.

Jargon buster

Cost of sales

What the items cost you to make, as a share of net revenue — the lower it is, the more margin you keep. (In money terms, each item’s cost × units sold.)

Blended cost of sales

Your food and drink cost‑of‑sales targets combined, weighted by how much of a menu’s revenue is food versus drink — the single figure each menu is checked against.

Gross profit

Net revenue left after cost of sales (so gross profit % = 100% − cost of sales %). It’s before any royalty or commission.

Contribution

Net revenue less cost of sales (and any royalty or commission), across all units sold. It’s gross profit — before labour and overheads.

Royalty / commission

A fee some businesses pay on every sale (for example to a franchisor). Toggle it on to factor it into the figures, or leave it off if you don’t pay one.

Net revenue

Sales with VAT removed — your margins are worked out on this figure.

Gross price

The price that’s on the menu, including VAT.

Good to know

• Keep the period the same for both menus so the comparison is fair.
• Nothing you type leaves your browser — your figures stay on this device.