A financial term used to describe the financial value of sales during a specific time period e.g. a year or month.

Turnover is important to a business, as this brings money back into a business.

It is a terminology defining the values of sales, which can be compared for specified months, year on year, to see in which months higher levels of turnover should be achieved in future years, based on previous performance, when planning cash-flow and budgets, or where calendar events can be taken advantage of to increase sales (turnover) in previous poorer months by developing marketing or sales campaigns.

However, turnover is not profit.

Turnover (sales) is required to generate profit, but products must be sold at the correct minimum price to make profit, and cover cost of sales and operational delivery.

Businesses in the catering or hospitality trade, or who provide catering as part of your overall operation can use MyEChef’s custom cost & profit calculator (included in every recipe specification) to calculate their preferred gross profit margins.

Remember the old business adage – “Turnover is vanity, profit is sanity”.

Basically there’s no point to turnover unless you are making profits. Many businesses focus on turnover without ensuring sufficient profit margin is built in and our custom cost & profit calculator is there to help make sure your are charging the right price for a dish or working within a budget when cost control is your focus.