Restaurant Profit Margin: Averages and Levers
By mise · Updated September 29, 2026
Quick answer: full-service restaurants typically net 3–5%, quick-service 6–9% and bars 10–15% after all costs. The biggest levers are prime cost (food + labor) and waste, which inventory control directly affects.
On a 5% margin, every dollar of waste needs twenty dollars of sales to make up. That is why inventory matters.
| Type | Typical net margin |
|---|---|
| Full-service | 3–5% |
| Quick-service | 6–9% |
| Bar | 10–15% |
| Catering | 7–8% |
| Food truck | 6–9% |
Net margin
Net margin: —
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Frequently asked questions
What is a good profit margin for a restaurant?
3–5% net for full-service; above 10% is excellent.
Gross vs net margin?
Gross = sales − COGS; net = after all expenses.
Fastest way to improve margin?
Cut waste and over-portioning: it goes straight to profit.
How much does mise cost?
A 7-day free trial, then US$33 a month per location (£26 in the UK).