The Low-Down on Restaurant Percentages

restaurant tables | Culinary Business Strategy Blog
photo credit: Jeffrey Wisdom

By Deagon B. Williams

Ya know, financials in the restaurant world are pretty confusing. Let alone when we start talking about restaurant percentages. Then it gets doubly confusing. So here’s the low down on restaurant percentages:

  • Consistency is key
  • They are only relevant to yourself in that matching last months and predicting next month’s percentages are far more relevant than comparing your numbers to others.
  • General rule of thumb is 30% fixed cost, 30% labor, 30%COGS and 10% profit.

Painful, isn’t it?  Well, that’s why it is a general rule of thumb and if you can get the 30s down to 25% then your profit margin just went up by 15%.

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