Free Profit Margin Template

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

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 assess your profit margin weekly or monthly to spot trends and make judgements.