How To Calculate Restaurant Profit Margin (Gross & Net) 2026
How To Calculate Restaurant Profit Margin (Gross & Net) 2026
3 weeks ago
thefoodygram.com
🤯 The 60-second profit margin calculation every restaurant owner needs to know! Start with monthly revenue, for a restaurant with 1,500 orders at $20 each, that's $30,000. Then calculate your monthly cost of goods sold (COGS). On average this is 28-32% of revenue, so about $9,000. Subtract COGS from revenue to get $21,000. Now account for rent, wastage, and marketing (typically 40% of revenue), which is $12,000, leaving you with a net profit of $9,000. Finally, calculate the profit margin: $9,0
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