What is the general profit of the catering industry?

It is normal for the gross profit margin of catering industry to reach 50% to 60%.

Gross profit is the income after all expenses, such as employee salaries, utilities and taxes. For example, at the end of the day, you have 1000 yuan in your cash box, which is gross profit; After deducting all expenses such as salary, water and electricity, tax and rent, what you save is net profit. If you deduct the above and 600 yuan, that's what you earned. In addition to the cost of ingredients, the hard expenses of restaurants are also labor. The more perfect the system in all aspects, the larger the restaurant, the higher the manpower of its stores. We should make it clear that labor costs include not only wages, but also bonuses, overtime pay, rewards, and related welfare expenses such as organizational learning, training and growth. The labor cost of a slightly bigger restaurant with better business is almost above 25%. Different business types and formats have different water and electricity costs. If it is a shopping mall, the cost is generally higher than that of a street shop. Most shopping malls are not allowed to use natural gas, only electricity; The gas cost of Chinese food is much higher than other categories, because Chinese food involves the high-frequency use of fierce stoves and so on. Rental costs include not only restaurant rental costs, but also employee dormitory rental costs. As well as the site property management fees, garbage cleaning fees and other miscellaneous fees generated by the site.

Generally speaking, the gross profit margin of the catering industry is about 60%, the rent cost is 20%-30%, the labor cost accounts for 15%-20%, and the net profit 15%-25%.