Definition
The contribution margin is the difference between the selling price and the variable costs of a dish — the amount that contributes to covering fixed costs.
Background & relevance for restaurant operators
For restaurant owners, the contribution margin per dish is more meaningful than the pure selling price. A dish at €15 with €3 cost of goods has a higher contribution margin (€12) than one at €25 with €15 cost of goods (€10). Digital menu costing makes this optimization simple.