What is the gross profit margin in the restaurant industry?

The average gross profit margin in the restaurant industry has to be 50% to 60% to be normal.

The gross profit is the revenue without all the expenses such as employee salaries, utilities, taxes, etc. For example, if you have 1,000 dollars in the night money box at the end of the day, this is the gross profit; you have to remove the wages, utilities, taxes, rent and other expenses after the savings is the net profit. If you deduct the above and still have $600, that's what you earn. In addition to the cost of ingredients, catering stores big hard expenses and labor. The more aspects of the system is perfect, the scale of the restaurant, under the store labor is higher. Let's be clear, the cost of labor includes more than just wages, but also involves employee bonuses, overtime, incentives, and welfare expenses related to organizational learning, training and growth. Slightly larger, better business restaurant, labor costs are almost always more than 25%. Utility costs vary by business category and format. If it is a mall restaurant, the costs are generally higher than street level stores. Most shopping malls do not allow the use of natural gas, so you can only use electricity; Chinese food gas costs are much higher than other categories, because Chinese food involves the use of high-frequency stove and so on. Rent costs include more than just the restaurant rent costs, the cost of renting staff quarters should also be taken into account. As well as property management fees, garbage removal fees, and other incidental costs arising from the venue.

Overall, the gross profit margin in the restaurant industry is about 60%, with rent costs at 20%-30%, labor costs at 15%-20%, and net profit at 15%-25%.