Gross profit is what is left after Cost of Goods. Average restaurant profit margins by type of establishment. Whether you’re just getting started or you have owned a restaurant for years, you should learn how to calculate and boost your restaurant profit margin. Are you talking about gross profit or net profit? But that doesn’t mean that you can’t earn a solid living by opening a restaurant — you just need to choose one of the more profitable types of restaurants. One reason they’re so profitable are Tao’s alcohol sales. Profit margin can be defined as the percentage of revenue that a company retains as income after the deduction of expenses. Reduce Overall Food Costs. Current and historical gross margin, operating margin and net profit margin for Restaurant Brands (QSR) over the last 10 years. Well, it may seem laughable. What you come to find is that it’s not as easy as it may seem for someone to make a profit. Full-service restaurants. In fact, the average profit margin in the industry fall between 2 and 6 percent. Typical Average Restaurant Profit Margins. Home | Composite | Search Market Shares | Contact Us | All New ! This is how much money you spend on raw materials. Your restaurant’s profit margin defines whether your business is successful or not. Alcohol sales often have the highest profit margins for restaurants. The profit margins we’ve already quoted are generally linked to full-service restaurants. The short answer is 8 to 12 percent of sales. Sep 9, 2013 Sep 12, 2013 by Brandon Gaille. Restaurants aren’t known for having especially high profit margins. Many restaurants calculate gross profit as what is left after Cost of Goods + Wages (also known as the Prime Cost). Restaurant Brands net profit margin … Let’s take a look at some of the most common restaurant operations and assess how profitable they might be. 1. Guide To Making A Profit. Gross Profit Margin ( by Restaurant Category ) | Home | Composite | Search Market Shares | Contact Us | All New ! How that number is derived tells a lot about the restaurant business. 4 Main Areas To Focus On To Improve Your Restaurant Profit Margin. You should focus on the following four areas to improve your restaurant operations and thus increase your restaurant profit margin. The restaurant and nightclub Tao Las Vegas consistently ranks as the highest earning restaurant in the country. First, you have COGS - cost of goods sold. Alcohol sales makeup more than 50 … No company can survive without earning enough money. Then you can take steps to reduce costs and increase your restaurant profit margins. In the restaurant business it’s about making great food, and all about making a great profit as well.