How is 'Gross Profit' calculated for a Buona restaurant?

According to Buona's 2025 Franchise Disclosure Document, the method for calculating gross profit is consistent for both single-brand and dual-brand Buona restaurants. For both concepts, 'Gross Profit' is defined as 'Gross Sales less Food Cost and Packaging Cost.'

'Gross Sales' represents the total revenue from the sale of goods and services, whether paid by cash, check, or credit card, for menu items, less sales tax. 'Food Cost' includes the costs of all food and beverage items. 'Packaging Cost' covers expenses related to paper and plastic products used for packaging.

For a prospective Buona franchisee, understanding this calculation is crucial for assessing the potential profitability of the business. By deducting the direct costs of food, beverages, and packaging from the total sales, franchisees can determine the initial profit margin before considering other operating expenses such as salaries, rent, utilities, and marketing costs. This 'Gross Profit' figure provides a foundational metric for evaluating the financial performance of a Buona restaurant.