What is Gross Sales?

Gross sales: Gross sales are all revenue received by a restaurant before anything else. This covers all revenue from food, drinks, deliveries, catering, and anything else without the benefit of refunds, discounts, promotions, or taxes.

Gross sales are the most important revenue ratio that indicates how a restaurant is doing financially.

Gross sales can consist of sales from-

• Dine-in
• Takeout
• Delivery
• Catering
• Beverages
• Merchandise or retail

How Do Gross Sales Work in Restaurants?

Every transaction that runs through the restaurant's POS system affects the gross sales.

Here's how it's generally done- Customers make orders, and payment is completed. The total transaction is recorded by the POS system. Sales figures are added together to create the gross sales revenue. This total is then applied as the gross sales amount. Managers use gross sales reports to monitor daily, weekly, monthly, and yearly performance.