What is the net profit of catering?

The net interest rate of catering industry is generally 8- 10%, which is considered normal.

Calculation method of net profit rate of catering industry;

Net profit = gross profit margin 69.35%- personnel expenses 18%- water and electricity expenses 5%- lease expenses 25%- amortization expenses 8%- other expenses 5% = 8.35%.

The food cost in the catering industry is 20%-30%.

Personnel expenses generally account for 18% of turnover.

Water and electricity costs generally account for 5% of turnover.

Amortized cost, decoration and equipment investment expenses are amortized for 5 years, accounting for 8% of the turnover.

Rental expenses generally account for less than 25% of turnover.

Other expenses, logistics expenses and publicity expenses account for 5% of the turnover.

The catering business tax is 5.65%, that is, gross profit margin = turnover-food cost-business tax = 69.35%.

Calculation of food cost rate in catering industry;

1, cost rate = cost volume ÷ turnover × 100%

2. Gross margin = gross margin ÷ turnover × 100% = 1- cost rate Gross margin+cost rate = 100% = 1 the ratio of gross margin to turnover (sales) indicates how much expense coverage and profit release interval can be extended in order to achieve a certain sales volume.

3. Gross profit margin of sales = (operating income-operating cost) ÷ operating income×100% cost gross profit margin = (operating income-operating cost) ÷ operating cost×100% Generally, only sales gross profit margin is calculated, and cost gross profit margin is only used to calculate operating profit generated by unit cost.

I hope the above content can help you. If in doubt, please consult a professional lawyer.

Legal basis:

People's Republic of China (PRC) Food Safety Law

Article 3 Food safety work shall be based on prevention first, risk management, whole process control and social governance, and a scientific and strict supervision and management system shall be established.

Article 4 Food producers and operators shall be responsible for the food safety of their production and operation.

Food producers and business operators shall engage in production and business activities in accordance with laws, regulations and food safety standards, ensure food safety, be honest and self-disciplined, be responsible to the society and the public, accept social supervision and assume social responsibilities.