Restaurant profitability
Restaurant profitability.
- · 5 min read
Restaurant Prime Cost: The Number Food and Labour Create Together
Understand restaurant prime cost, how to calculate it, why food and labour should be read together, how service model changes the ratio, and how to diagnose movement without chasing one universal target.
- · 5 min read
Restaurant Labour Cost Percentage: Calculate It, Then Find the Cause
A restaurant labour cost percentage guide covering wages and benefits, the correct sales denominator, 2024 industry context, scheduling diagnostics, productivity and why a ratio should not be managed in isolation.
- · 5 min read
Restaurant Break-Even Point: How Much Sales Do You Actually Need?
Calculate a restaurant break-even point using fixed costs and contribution margin, understand why food and delivery fees are variable, test daypart economics, and avoid confusing break-even with cash flow.
- · 5 min read
Average Restaurant Profit Margin by Format: Use the Median Carefully
See current 2024 U.S. restaurant pre-tax income medians for full-service and limited-service restaurants, understand what the numbers do and do not mean, and compare margin with food, labour, occupancy and sales volume.