Restaurant Profit Margin Calculator
Restaurant Profit Margin
Calculate your restaurant net profit margin by entering revenue, food costs, labor costs, rent, and other operating expenses to see profitability at a glance.
Formula
Net Profit = Revenue - (Food Cost + Labor Cost + Rent/Utilities + Other Expenses); Profit Margin = (Net Profit / Revenue) x 100
Frequently Asked Questions
What is a good profit margin for a restaurant?
Full-service restaurants typically achieve a net profit margin of 3 to 9 percent. Fast-casual restaurants may reach 6 to 9 percent, while fine dining can vary widely from 2 to 15 percent depending on volume and pricing.
How can I improve my restaurant profit margin?
Focus on controlling food waste, optimizing labor scheduling, negotiating supplier prices, engineering your menu to promote high-margin items, and reviewing portion sizes regularly.
What percentage of revenue should food cost be?
Most successful restaurants keep food cost between 28 and 35 percent of revenue. Fine dining may run higher at 35 to 40 percent, while fast food aims for 25 to 30 percent.
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