Restaurant profit margin calculator
Every $100 in sales leaves $6.67.
Inside the typical 3% to 9% range for restaurants. Prime cost (food + labor) is at or under the common 60% benchmark. Delivery app commission is 6.7% of sales.
Restaurant profit margin = (sales − all costs) ÷ sales × 100. Full-service restaurants typically net 3% to 5%, and quick-service and fast-casual restaurants 6% to 9%, according to Toast. A common health check is prime cost, food plus labor, at or under about 60% of sales. In the example, $60,000 in sales with $56,000 in costs leaves $4,000, a 6.7% margin. Note the $4,000 in delivery app commission: moving those orders to the restaurant's own ordering would nearly double the profit.
What is the average restaurant profit margin?
Toast lists 3% to 5% for full-service restaurants, 6% to 9% for quick-service, fast-casual and food trucks, and 4% to 9% for fine dining, with an overall range of 0% to 15% (Toast). Thin margins mean small costs matter a lot.
What is prime cost?
Prime cost is food and drink costs plus all labor costs, including payroll taxes and benefits. Keeping it near 60% of sales is a common benchmark for a healthy restaurant (Toast). It's the biggest cost a restaurant can actually control week to week.
How much do delivery apps cut into restaurant profit?
At 15% to 30% per delivery order (DoorDash pricing), commission is often several times a restaurant's whole profit margin. A restaurant netting 5% that sends 10% of its sales through DoorDash Plus pays 2.5% of total sales in commission, half its profit. See DoorDash fees.
How can a restaurant increase its profit margin?
Lower food cost with portion control and menu pricing, schedule labor to real traffic, and stop paying commission on orders from regulars by moving them to the restaurant's own ordering. Each point of margin on $60,000 a month is $600. More in how to increase restaurant sales.
Benchmarks used by the calculator
| Measure | Benchmark | Source |
|---|---|---|
| Net margin, full service | 3% to 5% | Toast |
| Net margin, quick service and fast casual | 6% to 9% | Toast |
| Prime cost (food + labor) | About 60% of sales | Toast |
| Food cost | 28% to 35% | ChowNow |
Sources
- Toast: average restaurant profit margin
- ChowNow: guide to restaurant food cost
- DoorDash merchant pricing (Basic, Plus, Premier plans)
Prices and fees were checked on October 18, 2026. They change, so check the source before you decide.