Food & Beverage Industry Financial Benchmarks
Food, beverage & labor Cost Percentage averages for Restaurant Segments
Disclaimer: These are general averages and can vary significantly based on location, specific restaurant operations, menu offerings, and economic conditions.
Average Profit Margins
- Full-Service Restaurants: 3-5%
- Fast Casual: 6-9%
- Catering & Other F&B Concepts: 2-15%
Labor Cost Percentages
- Fine Dining: 30-35%
- Casual Dining: 25-30%
- Quick Casual: 25-28%
Food Cost Percentages
- Fine Dining: 28-32%
- Casual Dining: 28-35%
- Quick Casual: 28-33%
Beverage Cost Percentages
- Fine Dining: 18-22% (higher for liquor, lower for wine and beer)
- Casual Dining: 20-25%
- Quick Casual: 20-25% (often lower due to a higher proportion of soft drinks)
Key Factors Affecting Costs
- Menu Complexity: More complex dishes often require more labor and higher-quality ingredients
- Service Style: Full-service restaurants typically have higher labor costs than counter-service or quick-service models.
- Ingredient Costs: Fluctuations in food and beverage prices can impact cost percentages.
- Location: Rent, labor costs, and customer spending habits vary by location.
- Economic Conditions: Inflation and economic downturns can affect pricing and costs.
It’s essential to note that these are averages. Successful restaurants often strive to achieve lower cost percentages while maintaining quality and customer satisfaction.
2023 figures of general ranges and trends that are typically observed in the restaurant industry:
Restaurant Segment | Labor Cost % | Food Cost % | Beverage Cost % |
---|---|---|---|
Fine Dining | 30-35% | 28-33% | 18-22% |
Casual Dining | 28-32% | 28-32% | 18-22% |
Quick Casual | 25-30% | 28-32% | 15-20% |
References:
The Average Restaurant Food Cost Percentage & What You Can Do About IT
100 Restaurant Industry Statistics for 2023
How to Reduce Food Cost Percentage In Restaurants
What is the Average Profit Margin for a Restaurant?
What is the Average Restaurant Profit Margin? Tips for Benchmarking and Optimizing