Gross vs. Net Sales
Sales before and after discounts, comps, voids and refunds are taken out.
Gross sales is the total rung before deductions; net sales is what remains after discounts, comps, voids and refunds, and it is the figure that should drive every percentage you calculate. Using gross where net belongs quietly flatters food cost, labor cost and average check at once. Sales tax sits outside both — it was never revenue.
Related terms
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