Started By
Message

re: About how much does a restaurant make off a $20 meal?

Posted on 8/10/14 at 6:51 pm to
Posted by jmarto1
Houma, LA/ Las Vegas, NV
Member since Mar 2008
34982 posts
Posted on 8/10/14 at 6:51 pm to
I know I'll get a bunch of OT bullshite but I'll answer this for those who are curious. My average profit is $1.07 per guest. Now the first thing some will say is because I work at a trashy restaurant that isn't worth a shite. Click on the next thread please. There are a lot of other costs associated with running a restaurant. It's not food, labor, and utilities. My store is extremely efficient when it comes to food and labor. Restaurants do shoot for the 30% mark and I average a 27%. The labor mark is usually 14% and I'll run an 11-12%. What's making margins shrink are things like workman's comp, liability, and unemployment. Now the one thing that is starting to erode my profit margin are the guests themselves. The demands of the market are lowering profit margins and raising the amount of time you sit there waiting for your food. I've been tracking the amount of what constitutes special order for us. These usually cause us to use extra product in an effort to satisfy the guest. They also creates more steps in making an order and longer ticket times. That's a different story though.
Posted by Kafka
I am the moral conscience of TD
Member since Jul 2007
145396 posts
Posted on 8/10/14 at 6:55 pm to
Posted by yellowfin
Coastal Bar
Member since May 2006
98083 posts
Posted on 8/10/14 at 6:56 pm to
I'm sure glad I'm in the boiling crawfish business and not the full service restaurant business
Posted by GrantTheFan
Baton Rouge
Member since Nov 2010
336 posts
Posted on 8/10/14 at 8:22 pm to
Jmarto knows restaurants. At the end of the month, if 5% of gross sales ends up being profit, it was a pretty decent month. People not on the ownership side of a restaurant have no idea how easily food costs can screw you if you're not on top of it.
first pageprev pagePage 1 of 1Next pagelast page
refresh

Back to top
logoFollow TigerDroppings for LSU Football News
Follow us on Twitter, Facebook and Instagram to get the latest updates on LSU Football and Recruiting.

FacebookTwitterInstagram