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Your restaurant profit margin measures how much money your restaurant keeps as profit after covering all expenses — including food, labor, rent, and utilities.
It’s one of the most important KPIs for evaluating your financial health.
Profit Margin = (Total Revenue - Total Costs) / Total Revenue × 100
The more efficiently you manage costs, the higher your profit margin can go.
| Restaurant Type | Average Profit Margin |
|---|---|
| Fast Food / Quick Service | 6–9% |
| Casual Dining | 3–5% |
| Fine Dining | 1–3% |
| Food Truck | 7–10% |
| Cafe / Bakery | 5–8% |
Track inventory closely and forecast demand.
Even a 2% savings can boost profits.
Match staffing levels to peak hours.
Offer add-ons or bundle menus.
To reduce no-shows and fill more tables.
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A healthy restaurant profit margin is typically between 3% and 10%, depending on the business model. Fast casual spots tend to have higher margins than fine dining venues.
Use this simple formula: (Revenue – Expenses) ÷ Revenue × 100.
Food, labor, and rent are the biggest cost drivers. Marketing, delivery fees, and maintenance can also impact profits.
At least monthly — regular reviews help spot trends and make timely adjustments.
Boost your profits with smarter reservations, fewer no-shows, and happier guests.