12 May 2026 5 min readBy Alex Garner, Founder of Profit Clinic
Gross profit percentage is the most quoted number in hospitality and one of the least useful on its own. It is an average of averages, and averages hide exactly the detail you need.
A good percentage can still mean lost cash
A business can improve GP percentage while making less money, simply by selling fewer high-value items. Cash margin per cover and cash margin per available seat hour tell you whether the business is actually better off.
Blended GP hides the losers
Split GP by category: food, wet, coffee, retail, rooms. Then split it again by menu section. It is normal to find one section running eight points below the rest and funding it out of everything else.
Theoretical versus achieved
The difference between the GP your costings predict and the GP you actually bank is the most valuable single number in the business. It is where waste, over-portioning, unrecorded staff food, giveaways and till errors live.
Calculate theoretical GP from your costed specs and product mix.
Compare with achieved GP from stock and sales.
Investigate any gap above one and a half points.
The takeaway
Stop managing one blended percentage. Manage cash margin, category GP and the gap between theoretical and achieved, and the percentage looks after itself.
Profit Clinic helps established hospitality businesses understand where profit is being lost and what they can do about it. We examine the numbers, the operation and the market, then turn the findings into practical, prioritised recommendations. Our primary paid service is the 30 day Commercial Review, examining profitability across the whole business. A focused Guest Experience Review or standalone project is also available when a particular area needs attention.
Who we work with
We work with established independent and boutique hotels, pubs and inns, restaurants, small and multi-site hospitality groups, caravan sites and holiday parks across the UK. The work is designed for owners and management teams with trading history and enough financial information to assess meaningful opportunities, rather than early-stage start-ups.
The problems we help solve
A busy venue can still struggle with weak margins, rising labour and supplier costs, inconsistent pricing, missed sales and unreliable reporting. Service gaps can also undermine the guest experience and repeat business. We look for the causes behind those symptoms, so you can distinguish urgent changes from longer-term improvements and make decisions based on evidence rather than guesswork.
What the 30 day Commercial Review includes
The review covers pricing, menus, revenue, labour, cost of sales, suppliers, purchasing and overheads. It combines on-site observation, management interviews, process review, a mystery shop, customer journey assessment and competitor benchmarking. We also examine your market position, local pricing and digital presence.
You receive a Commercial Growth Blueprint: an executive summary, quick wins, a 90-day action plan and a 12-month roadmap. Recommendations carry an estimated financial impact, priority, difficulty, implementation cost, expected return and timeline. The blueprint is yours to implement with your team or with our support; further work is optional.
Alex spent the last decade running, operating and improving pubs, restaurants and hotels. He founded Profit Clinic to give independent operators the commercial attention that larger groups receive from dedicated departments. The wider Profit Clinic team brings over 25 years of hospitality experience. That distinction matters: Alex's personal operating experience is supported by the team's broader industry knowledge.
How to work with us
Start with a free, no-obligation Profit Discovery: an initial business review, three commercial observations, an estimated opportunity value and a short review meeting. Discovery helps establish whether our core paid service, the Commercial Review, is right for your business. Or contact Alex directly about a focused Guest Experience Review or specific piece of work. Tell us your business type, number of venues and what you want to improve; we discuss the scope and agree a written quotation before you commit. Every engagement is treated in confidence.
