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Average Restaurant Profit Margins: What They Are And How to Improve Yours

ChowNow

A spike in food costs, a drop in sales volume, or one slow season can wipe out months of hard work. That includes the ingredients and packaging for your menu items, but not things like rent and payroll. This gives you a sense of how effective your menu pricing is. Your cost of goods sold (ingredients, beverages, packaging, etc.)

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Restaurant Cost Control Strategies Every Operator Should Be Using

ChowNow

Food Costs (COGS) Your food costs, or cost of goods sold (COGS), include everything that goes into producing your menu items, including: Recipe ingredients Beverages Condiments Disposables, like to-go containers, straws, and napkins Tracking your food costs percentage helps you understand how much of your revenue is being spent on your menu.

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How To Cut Restaurant Operating Costs Without Compromising Quality

ChowNow

Examples include: Rent or mortgage payments Insurance premiums Loan payments Salaried employees (like general manager or executive chef) Because theyre consistent, fixed costs are easier to budget for, but that also means theyre harder to reduce without significant structural changes.

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MRM Research Roundup: Experimentation, Valentine’s Vibe Shift, and Wine Cork Market

Modern Restaurant Management

Nearly two-thirds (65 percent) say they plan to increase their number of locations in 2025, and 74 percent plan to expand their menu offerings, leaning into new experiences and experimentation to power their growth. The fully cooked product heats quickly, enabling c-store operators to easily add bacon to a host of their menu options.

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MRM Research Roundup: Holiday Spending, Franchise Optimism, and Pickle Energy

Modern Restaurant Management

The primary response was menu price increases, with nearly 61 percent of respondents adjusting prices to cope with the new reality. However, the industry has renewed optimism, driven by the adoption of digital and mobile ordering, menu creativity and heightened expectations around AI. million birria orders this year alone.

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How to Read a Restaurant P&L (Profit and Loss) Statement + Free Template

SpotOn

Gross sales are used to identify trends, seasonal shifts, and the impact of marketing campaigns. Gross profit margin Gross profit margin measures how much money you have left over after COGS and is used to measure the profitability of your menu. Utilities vary based on use, the season, and efficiency. Occupancy costs.

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28 Strategies to Cut Costs in the Restaurant Business

Lavu

Examples of fixed costs for a restaurant include rent, insurance, and equipment lease payments. However, finding ways to negotiate lower rent or insurance rates, or to optimize equipment usage can help to reduce fixed costs. One effective way to achieve this is by using cost-effective ingredients in your menu items.