What is the gross profit margin of catering?

The normal range of catering gross profit margin is as follows:

1, the gross profit margin of the catering industry is usually between 30% and 70%;

2. The gross profit margin of fast food and snacks is high, reaching 60%-70%;

3. The gross profit margin of mid-range restaurants is generally 40%-50%;

4. Due to the high cost of high-end restaurants, the gross profit margin may be 30%-40%.

Cost structure of catering industry;

1, raw material cost: including the cost of ingredients, spices, etc. directly used to make dishes;

2. Labor costs: employee salaries, social insurance, training fees, etc.

3. Rental fee: the fee for renting the venue of the restaurant;

4. Miscellaneous utilities: including daily operating expenses such as water, electricity and gas;

5. Marketing expenses: advertising, promotional activities and other expenses to increase passenger flow;

6. Equipment depreciation: depreciation expenses of fixed assets such as kitchen equipment and tableware;

7. Management expenses: management and operation expenses, such as the salary of managers and office expenses.

To sum up, the normal gross profit margin of the catering industry is 30%-70%, of which fast drinks and snacks can reach up to 60%-70%, while mid-range restaurants are usually 40%-50%, while high-end restaurants are lower because of their higher costs, which is about 30%-40%.

Legal basis:

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

essay

Food safety work should focus on prevention, risk management, whole-process control and social governance, and establish a scientific and strict supervision and management system.

People's Republic of China (PRC) enterprise income tax law

Article 8

Reasonable expenses related to income actually incurred by an enterprise, including costs, expenses, taxes, losses and other expenses, are allowed to be deducted when calculating taxable income.