Markups at restaurants/fast food

Pasta

Drinks of any kind, especially alcohol are their money makers.
Not a big mark up on food items.
The rents and high cost of everything is killing non chain restaurants and hurting even chain places that don’t own their properties.

Fountain drinks

Markups are irrelevant. The industry is barely profitable in most cases, and with rising wages, you will see more and more super high volume mega chains like MdD and CFA, and fewer mom & pops or out of the mainstream concepts.

In a restaurant that is running perfectly:

COGS, ie food, is 27-35% of your cost on average, including waste. Markups on some things are more than on others, so yes, sodas and tea are higher markups. Look at those as a percent of total revenue though and they are small.

Labor is about 25-30%

Cost of occupancy - NNN rent, insurance, local and state regs, is another 25-30% and has gone up with taxes.

Few if any restaurants ever get to 25/25/25% across the board, though CFA and McD's are probably close. Use more raw ingredients to cut food costs, labor goes up for prep, etc. Typical margins are 10% or less, and often negative for some months.

soda

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Pizza

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Basically bread, flattened out, with a bit of sauce and cheese.

Drinks

Drink



It's the least labor-intensive thing.


And if talking about a restaurant with a bar, the bartenders aren't paid shite, they make tips, the kitchen staff is paid more. It cost you more to employ the fry guy.

Escargot, easily.

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Have you been to a subway recently? Got damn

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There's a classic case of bare minimalist on everything. Minimum labor, minimum space, minimum prep. And for the record, I haven't eaten at one in 10 years or more! That's a desperation meal for me!