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?