Gross Profit

From VANEEpedia

Gross Profit, also known as Contribution Margin, is an item's menu price less its food cost.

Gross Profit = Menu Price - Food Cost

Let's take the example of a bowl of Chili. A restaurant may charge $3.99 for a bowl of chili. If the food cost of the bowl of chili is $.65, then the gross profit on that serving of chili is $3.34.