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.
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%.
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.
To calculate your restaurant profit margin, you’ll need the following numbers:
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
Profit Margin Calculator
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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