Psst, 7shifts’ scheduling tool can make this process much easier! 👇

What Is a Profit Margin Calculator?

A profit margin calculator is a tool to determine your restaurant’s gross profit margin. Your gross profits and margin track how much money your restaurant makes after deducting the costs of goods sold, labor costs, and any additional costs incurred while running a restaurant business.

What is a typical profit margin for a restaurant?

This varies from restaurant to restaurant, but the average profit margin for a full-service restaurant ranges from 3-5%.

For restaurants that are quick service or food trucks, operating costs are lower, leaving profit margins considerably higher, at 6-9%.

How Often Should You Calculate The Profit Margins?

You should keep a close eye on your profit margins to ensure your restaurant is in good financial health. Every day may be too often, but calculating each week, month, and a quarter can give you a closer look into how your business is doing, and allow you to make proper adjustments fast.

What should be included in the calculation?

To calculate your restaurant profit margin, you’ll need the following numbers:

  1. Total revenue, or the total sales of food, beverage, and merchandise
  2. Cost of Goods Sold, or what you pay for food and beverage
  3. Labor costs, for both hourly and salaried employees (including benefits!)
  4. Other expenses, like rent, utilities, maintenance, marketing, and anything else you spend to run your restaurant

How To Use the Profit Margin Calculator

Here’s how to make the most out of your restaurant profit margin calculator:

Step 1: Add in your total restaurant revenue from all sources

Step 2: Add your expenses, such as CoGs, labor, and other

Step 3: Calculate your profit margin to see where you stand

Step 4: Make adjustments as necessary to improve your profit margin

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How 7shifts compares to the Profit Margin Calculator

Profit Margin Calculator

Easy schedule builder

Customizable to your restaurant

Free

Sharable with your team

Free mobile apps

Robust labor, sales, and compliance reports

Communication tools (chat, announcement)

Easy manager note taking

Labor budgeting tool

Labor compliance tools

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Run your restaurant more effectively

Staying on top of your profit margins is key to restaurant success. 

By downloading this profit margin calculator and template, you’ll be able to identify new ways to increase your profit margins, reduce expenses and run a thriving restaurant. 

If your restaurant is growing, take your labor management to the next level and save $500/month on labor with 7shifts. Easily build staff schedules in minutes, integrate your POS to forecast your labor needs, and monitor your sales and team performance over time with robust reports. 

Taking your restaurant’s labor management digital can save your business $1,000s every month and streamline your operations. Check out 7shifts restaurant employee scheduling software today.

Restaurants save with 7shifts

80%

Time saved on managing staff schedules

1-3%

Labor costs saved

70%

Reduction in phone calls and texts

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