Restaurant Margins: Norms and Optimization

Average restaurant net margin: 3-9%. Seems low, but with proper management you can reach 15-20%.

Types of Margins

Gross: revenue - product cost = 65-75%. Operating: after salaries and rent = 10-20%. Net: after all expenses = 3-9%.

How to Increase Margin

1) Optimize food cost (to 25-30%), 2) Increase average check (upselling), 3) Reduce losses (waste, theft), 4) Automation = staff savings.