How does your restaurant measure up?

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?