Free Restaurant Profit Margin Calculator

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

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. 

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