Use our free Restaurant Profit Margin Calculator to estimate how much profit your restaurant can generate each month. Simply input your average check size, daily guest count, food and labor costs, and rent. This tool is perfect for restaurant owners and managers who want to understand their financial performance and optimize operations for better profitability.
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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.