How do you know if your restaurant is performing well? The IRS reported industry averages for small business restaurants that you can use to benchmark your establishment’s financial performance:
Overall Profit | 5.6% | Gross Revenue |
Food | 45-53% | Gross Revenue |
Wages | 15-19% | Gross Revenue |
Rent | 6-8% | Gross Revenue |
Utilities | 4% | Gross Revenue |
Insurance | 1-2% | Gross Revenue |
Advertising | 1% | Gross Revenue |
How much revenue should you expect to come from alcohol sales? At a recent meeting with restaurant veterans, it was reported that alcohol sales accounted for 16-20% of total sales.
How do your numbers compare?