The Top Financial Ratios in the Restaurant Industry

  1. 1.

    Divide various operating results by the number of seats in the restaurant to create per-seat ratios. For example, the median annual net profit from beverage sales per seat was $1,091, according to a 2010 report by the National Restaurant Association, which compiles data gleaned mostly in 2008. Other data you might report using a per-seat ratio include food and total sales. Relating various financial figures to the number of seats helps restaurants of different sizes compare relative profitability.

  2. 2.

    Relate various operating results to income by reporting each as a percentage of total sales. For example, the restaurant industry’s median annual operating expenses — such as employee wages, marketing, maintenance and utilities — were about 62 percent of total sales, according to the same report by the National Restaurant Association. Other data you might report as a percentage of total sales include food and beverage income or costs, and specific expenses, such as music and entertainment.

  3. 3.

    Use the comparisons to help you identify areas where your restaurant can improve. For example, if you need to increase profits, knowing how your food costs compare to others in your industry can help you decide between looking for cheaper suppliers and raising your prices, according to the book “Opening a Restaurant or Other Food Business Starter Kit,” by Sharon L. Fullen.