Focusing on true net profit after all expenses for the independent restaurant owner, not just revenue, gross margin, or unit-level economics.
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Operator Profitability
Focusing on true net profit after all expenses for the independent restaurant owner, not just revenue, gross margin, or unit-level economics.
Related terms
- Net Profit Margin — The percentage of revenue remaining after all expenses, including food costs, labor, rent, and utilities. Most sub-$2M operators target 5-15%.
- Prime Cost — The combined cost of food, beverage, and labor. For most restaurants, prime costs should stay between 55-65% of total revenue.