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Typical restaurants have a labor cost of about 30% of gross revenue and is one of the larger costs in food service operations (along with rent and food costs).
by jfim 3y ago
Typical restaurants have a labor cost of about 30% of gross revenue and is one of the larger costs in food service operations (along with rent and food costs).
- coldtea 3y agoTypical restaurants. This is fast food though - notoriousy underpaying, McDonalds being owner of much of their real estate, everything optimized all the way, everything mass produced at the lowest cost. I'm not saying this means their labor's costs percentage is lower (it can be higher than a typical restaurant). I'm saying they have way better margins: "McDonald's net profit margin as of June 30, 2023 is 33.06%". As for the typical restaurant? "The range for restaurant profit margins typically spans anywhere from 0 – 15 percent, but the average restaurant profit margin usually falls between 3 – 5 percent". So they can cry me a river...