Typical Restaurant Operating Expenses as a % of Sales (1976)

Traditional

Fast-Food

Steak

Coffee

Table-Serv

Restaurant

House

Shop

Restaurant

Sales:

Food

100.0%

85.0%

100.0%

90.7%

Beverages

0.0%

15.0%

0.0%

9.3%

Total Sales

100.0%

100.0%

100.0%

100.0%

Cost of Slaes:

Food, % of Food Sales

42.0%

45.0%

34.0%

35.0%

Beverages, % of Beverage Sales

0.0%

30.0%

0.0%

28.0%

Total cost of Sales

42.0%

43.0%

34.0%

34.3%

Gross Profit:

Food

58.0%

55.0%

66.0%

65.0%

Beverages

0.0%

70.0%

0.0%

72.0%

Total Gross Profit

0.0%

57.0%

66.0%

65.7%

Operating Expenses:

Payroll

19.0%

20.0%

30.0%

38.5%

Advertising

3.0%

2.0%

0.5%

1.5%

Other

9.0%

9.0%

10.2%

11.0%

Total operating expenses

31.0%

31.0%

40.7%

51.0%

Profit before occupancy costs

27.0%

26.0%

25.3%

14.7%

Occupancy Costs:

Rent

8.0%

5.2%

15.0%

4.5%

Depreciation

2.2%

2.5%

3.9%

3.5%

Insurance

0.6%

0.3%

0.4%

0.3%

Total occupancy costs

10.8%

8.0%

19.3%

8.3%

Profit before tax

0.0%

18.0%

6.0%

6.4%