Restaurant Profit Calculator
Restaurant net profit and prime cost.
Calculate restaurant monthly profit from revenue, food cost %, labour cost %, and fixed overheads. Check prime cost ratio.
What this tool does
This tool calculates monthly net profit from revenue, food cost percentage, labour cost percentage, and fixed monthly costs.
Enter Values
Formula Used
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Disclaimer
Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.
Restaurants run on two big variable costs: food (COGS) and labour. Combined, these two are the industry's 'prime cost'. Healthy casual dining sits around 55-65% prime cost, fast casual 50-60%, and fine dining 60-70%. Anything above 70% and fixed costs (rent, utilities, insurance) usually leave the owner taking nothing home.
80k monthly revenue with 30% food, 30% labour, and 15k fixed costs nets 17k profit, about 21% net margin. That's the top end for independent restaurants. The typical sit-down restaurant hits 3-9% net margin; chains with volume and purchasing power reach 10-15%.
Variable costs scale with revenue but fixed costs don't, which is why slow weeks hurt so much. A 20% revenue drop can wipe out profit entirely because fixed costs stay the same. Many restaurants target break-even at 60-65% of capacity.
Run it with sensible defaults
Using monthly revenue of 80,000, food cost of 30%, labour cost of 30%, fixed costs monthly of 15,000, the calculation works out to 17,000.00. Nudge the inputs toward your own situation and the output recalculates instantly. The defaults are meant as a starting point, not a recommendation.
The levers in this calculation
The inputs — Monthly Revenue, Food Cost %, Labour Cost %, and Fixed Costs Monthly — do not pull with equal force. Not every input has equal weight. Flip one at a time toward extreme values to feel which ones move the needle most for your situation.
How the math works
Food cost = revenue × food %. Labour cost = revenue × labour %. Net profit = revenue - food - labour - fixed. The working is transparent — you can verify every step yourself in the formula section below. No black box, no opaque "proprietary model".
What the score tells you
Headline financial numbers — income, savings, debt — each tell part of the story. This calculation stitches several together into a single read you can track over time. The value is in the direction, not the absolute number.
What this doesn't capture
The score is a composite of the inputs you provide. Life context — job security, family obligations, health, housing — doesn't appear in the math but shapes the real picture. Use the number as a prompt, not a verdict.
£80,000 £ revenue - 30% food - 30% labour - £15,000 £ fixed = $17,000.00.
Inputs
This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.
Sources & Methodology
Methodology
Food cost = revenue × food %. Labour cost = revenue × labour %. Net profit = revenue - food - labour - fixed.
References
Frequently Asked Questions
What is prime cost?
Why are labour costs so high?
Does this include the owner's salary?
What about delivery apps?
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