Most restaurants have a profit margin that falls between 3% and 6%, but that number can get up to 10% or more. The profit margin completely depends on the type of restaurant and what it offers.
You can protect your restaurant profit margin by following these steps:
- Become familiar with your profit margin and the inner workings of your business
- Determine your ideal profit margin based on your restaurant
- Reduce labor costs that are over 30%
- Finetune your social media strategy
- Improve inventory tracking methods
- Implement upselling techniques
Let’s go over the definition of a profit margin and how you can determine your restaurant’s current profit margin. We will also share some effective methods to protect your profits, including those listed above, and how to execute each method. We’ll also discuss some dependable ways to increase that profit margin over time.