Restaurant Profit Margin Statistics By Type

A restaurant packed every night still loses money in plenty of cases. The median full service restaurant in the US kept 2.8 cents of every sales dollar before taxes, and 42% of operators lost money or broke even in 2025. At the same time, a Taco Bell company store runs a 25.9% restaurant margin and a Chipotle earns about $780,000 a year in four wall profit per location.

That gap is what this page is about. Profit margins in food service depend heavily on the type of restaurant: a bar selling drinks at an 18% pour cost plays a different game from a fine dining room paying senior chefs, and a ghost kitchen with zero dining room has a different cost base from a 300 seat steakhouse.

I also did my own math on the raw numbers, such as annual four wall profit per location for leading chains and what one point of labor cost means for a typical restaurant. A quick note on terms before you start: net margin is profit after every expense, while restaurant level (four wall) margin leaves out corporate overhead, so chain margins look far higher than independent net margins.

Restaurant Profit Margin Statistics TL;DR

• The median US full service restaurant earned 2.8% before taxes and the median limited service restaurant 4.0%.
• 42% of US restaurant operators lost money or broke even in 2025, up from 29% a year earlier.
• Typical net margins: quick service 6% to 9%, fast casual 6% to 10%, full service 3% to 5%, fine dining 5% to 10%, bars 10% to 15%.
• Ghost kitchens and pizzerias average about 15%, while small cafes average about 2.5%.
• Chipotle earned a 25.4% restaurant level margin in 2025, Cava 24.4%, Shake Shack 22.6% and Sweetgreen 15.2%.
• McDonald’s franchised margins equal about 84% of franchise revenue, against about 15% for its company run stores.
• Labor takes a median 36.5% of full service sales and 31.7% of limited service sales.
• Food away from home prices rose 3.5% in the year to September 2026.
• UK hospitality lost about 20 sites a day to closures in Q2 2026.
• 41% of Canadian restaurant operators are losing money or breaking even in 2026.

Editor Picks: Latest Restaurant Profit Margin Statistics

• A Chipotle restaurant earns about $782,000 a year in four wall profit ($3.102 million AUV at a 25.2% margin).
• A Cava restaurant earns about $756,000 a year at the restaurant level.
• A Shake Shack earns about $933,000 a year at the restaurant level ($78,000 weekly sales at a 23.0% margin).
• A Texas Roadhouse earns about $1.51 million a year in restaurant margin ($29,092 per store week).
• A Dutch Bros company shop earns about $596,000 a year in contribution margin.
• A Sweetgreen earns about $330,000 a year at the restaurant level, less than half of a Chipotle.
• A full service restaurant with $1 million in sales at the 2.8% median keeps about $28,000 a year before taxes.
• For that restaurant, one point of labor cost ($10,000) equals about 36% of annual profit.
• Profitable full service restaurants spend 8.7 points less on labor than loss making ones (34.2% against 42.9%).
• A 30% delivery commission is six to ten times the 3% to 5% net margin of a typical full service restaurant.
• Taco Bell company stores run a restaurant margin almost 12 times higher than Pizza Hut company stores (25.9% against 2.2%).
• McDonald’s franchised margin rate is about 5.7 times its company operated margin rate.
• The Darden fine dining segment margin fell 4.7 points in a year, from 17.7% to 13.0%.
• Sweetgreen restaurant level margin dropped 5.8 points in a year, the largest fall among large fast casual chains.
• UK hospitality closed about 20 sites a day in Q2 2026 and opened about 19.7 a day.

Average Restaurant Profit Statistics

• The average restaurant pre tax profit margin is 3% to 5%.
• Restaurant net margins range from 0% to 15% across all formats.
• The median full service restaurant earned 2.8% of sales before taxes.
• The median limited service restaurant earned 4.0% of sales before taxes.
• The bottom quarter of full service restaurants lost 2.1% of sales.
• 58% of US operators were profitable in 2025.
• 42% of operators were unprofitable in 2025, up from 29% a year earlier.
• Full service restaurants report an average 10.5% profit margin in a large operator survey, up from 9.8% in 2024 and 9.3% in 2023.
• 66% of full service operators carried debt in 2025, down from 78%.
• The average full service operator carried $44,625 in debt.
• Restaurant EBITDA margins run 12% to 30%.
• Full service EBITDAR runs about 15.1% and quick service about 20.0%.
• Franchisee pre tax margins run 3% to 5%.
• Independent restaurants average 3% to 5% net margins.

Restaurant Profit Margin by Type

Restaurant Net Profit Margin by Type

Restaurant Type	Typical Net Profit Margin
Quick service (fast food)	6% to 9%
Fast casual	6% to 10%
Full service	3% to 5%
Casual dining	5% to 7%
Fine dining	5% to 10%
Coffee shops and cafes	2.5% to 5%
Bars and pubs	10% to 15%
Nightclubs	15% to 20%
Wine bars	7% to 10%
Pizzerias	About 15%
Bakeries	About 4% (top performers 9%)
Food trucks	6% to 9%
Ghost kitchens	8% to 15%
Catering	7% to 8% (high end up to 15%)
Buffets	5% to 15%

Quick Service Restaurant Profits

• Quick service restaurants earn net margins of 6% to 9%.
• Quick service EBITDA margin reached 18.9% in early 2025.
• Quick service labor margin fell from 21.1% in 2024 to 18.8% in 2025.
• Limited service restaurants spend a median 65 cents of every sales dollar on prime cost.
• Limited service labor runs 31.7% of sales: 30.0% at profitable restaurants and 34.1% at loss making ones.
• Taco Bell company restaurants run a 25.9% restaurant margin.
• KFC company restaurants run a 12.0% restaurant margin.
• Pizza Hut company restaurants run a 2.2% restaurant margin, up from a loss of 6.6%.
• Yum company restaurants run a 16.3% margin across brands.
• Jack in the Box runs a 17.6% restaurant level margin and a 37.4% franchise level margin.
• US Burger King company restaurants run about an 11.4% margin.
• McDonald’s company operated stores earned about a 14.7% margin in 2025.
• McDonald’s US company operated margins fell 14% in 2025, to about 11.6%.
• McDonald’s company operated stores in its International Operated Markets earned about 16.8%.

Fast Casual Restaurant Profit Margin

• Fast casual restaurants earn net margins of 6% to 10%.
• Fast casual EBITDA margin reached 23.6% in early 2025, the highest of any segment.
• Chipotle earned a 25.4% restaurant level margin in 2025, down from 26.7%.
• Chipotle restaurant level margin was 25.2% in Q2 2026, down from 27.4%.
• Chipotle costs in Q2 2026: food 29.7%, labor 25.0%, occupancy 5.2%, other 14.9%.
• Chipotle average unit volume is $3.102 million.
• Cava earned a 24.4% restaurant level margin in 2025 and 25.7% in Q2 2026.
• Cava average unit volume reached $3.1 million.
• Cava net margin was 6.2% in Q2 2026.
• Shake Shack earned a 22.6% restaurant level margin in 2025, up from 21.4%.
• Shake Shack restaurant level margin was 23.0% in Q2 2026.
• Sweetgreen restaurant level margin fell to 15.2% in 2025 from 19.6%.
• Sweetgreen restaurant level margin fell to 13.1% in Q2 2026.
• Wingstop company restaurants run about a 26.7% margin.
• Wingstop targets franchisee cash on cash returns above 70% by year two on about $580,000 invested.
• Portillo’s restaurant level margin was 21.7% in Q2 2026.
• Kura Sushi restaurant level margin was 19.1% in its fiscal Q3 2026.
• The first year failure rate for fast casual restaurants is 0.5%.

Full Service Restaurant Profits

• Full service restaurants earn net margins of 3% to 5%.
• Full service labor runs a median 36.5% of sales.
• Profitable full service restaurants spend 34.2% of sales on labor, against 42.9% at loss making ones.
• Full service prime cost runs about 61.9% of sales.
• Median food and beverage cost runs about 32.0% at full service restaurants and 32.4% at limited service ones.
• Full service employment remains 174,000 jobs (3%) under pre pandemic levels.

Casual Dining Restaurant Profit Margin

• Casual dining restaurants earn net margins of 5% to 7%.
• Olive Garden earned a 22.5% segment margin in fiscal 2026.
• LongHorn Steakhouse earned an 18.6% segment margin in fiscal 2026.
• Chili’s earned an 18.5% restaurant operating margin in fiscal 2026, up from 17.6%.
• Maggiano’s restaurant operating margin fell to 10.1% from 16.3%.
• Texas Roadhouse restaurant margin was 15.5% in 2025 and 16.4% in Q2 2026.
• Texas Roadhouse spends 35.4% of sales on food and 32.5% on labor.
• Texas Roadhouse average unit volume is $2.38 million.
• The Cheesecake Factory restaurant level margin reached about 20%, a 10 year high.
• North Italia restaurant level margin fell to 15.6% from 18.2%.
• BJ’s Restaurants restaurant level margin was 17.2% in Q2 2026.
• Dave and Buster’s store operating margin was 23.5% in fiscal Q2 2026, down from 27.9%.
• Darden spends 30.8% of sales on food and beverage and 32.2% on labor.
• Casual dining same store sales fell 0.4% in Q4 2025, while Chili’s grew 8.7%.

Family Dining Restaurant Profits

• First Watch restaurant level margin was 18.8% in Q2 2026.
• Denny’s company restaurant margin was 12.6% and its franchise operating margin 52.0%.
• Cracker Barrel adjusted EBITDA margin fell to 4.5% in fiscal 2026 from 6.4%.
• Cracker Barrel labor takes 37.3% of revenue.
• Dine Brands company owned restaurants ran about a negative 3.8% margin in Q2 2026, improved from negative 9.6%.

Fine Dining Restaurant Profit Margin

• Fine dining restaurants earn net margins of 5% to 10%.
• Higher end full service EBITDA margin fell to 12.2% in early 2025 from a 19% peak.
• The Darden fine dining segment (Ruth’s Chris, The Capital Grille, Eddie V’s) earned a 17.7% margin in fiscal 2026.
• The same fine dining segment margin fell to 13.0% in the quarter ending August 2026.
• UK fine dining restaurants earn 5% to 15%.
• The first year failure rate for fine dining is 4.9%, the highest of any segment.

Coffee Shop and Cafe Profit Percentage

• Small cafes average about a 2.5% net margin.
• Cafes earn 3% to 5% net margins on average.
• Mature independent cafes earn 8% to 15%, and franchise cafes 6% to 10%.
• UK cafes and bakeries earn 6% to 9% net.
• Starbucks North America operating margin fell to 11.5% in fiscal 2025 from 19.8%.
• Starbucks North America operating margin recovered to 13.6% in fiscal Q3 2026.
• Starbucks North America store operating expenses take 56.1% of company store revenue.
• Dutch Bros company shop contribution margin was 28.9% in 2025 and about 31% in Q2 2026.
• Dutch Bros company shops average $2.061 million in sales.

Bar and Pub Profit Margin

• Bars and pubs earn net margins of 10% to 15%.
• Nightclubs earn 15% to 20%.
• Wine bars earn 7% to 10%.
• The ideal bar pour cost is 18% to 24%.
• UK pubs and bars earn 7% to 15% net.
• UK bar like for like sales fell 2.5% in August 2026, while pub sales rose 0.5%.

Pizzeria Profits

• Pizzerias average about a 15% profit margin.
• Independent pizzerias earn 5% to 10%, and pizza franchises 10% to 20%.
• Domino’s US company store gross margin fell to about 11.95% in Q3 2026 from 16.30%.
• Domino’s supply chain gross margin is 12.2%.
• Papa John’s domestic company stores earn about an 11.2% four wall EBITDA margin.
• Papa John’s North America comparable sales fell 8.3% in Q2 2026.

Bakery Profit Margin

• Bakeries average about a 4% profit margin, with top performers at 9%.
• Bakery food costs run 30% to 35% of sales.
• Bakery labor costs run 24% to 40% of sales.

Food Truck Profit Percentage

• Food trucks earn net margins of 6% to 9%.
• Successful food trucks reach 14% to 15%.
• The average food truck earns a 6.2% margin on $346,000 in revenue.

Ghost Kitchen Profit Margin

• Ghost kitchens average about a 15% profit margin.
• Ghost kitchen margins run 8% to 15%, against 3% to 9% for traditional restaurants.
• Ghost kitchen labor runs 20% to 25% of sales, against 25% to 35% for dine in restaurants.

Catering and Buffet Profits

• Catering businesses earn 7% to 8% on average.
• High end caterers reach up to 15%.
• Buffets earn 5% to 15% net.
• Buffet food costs run 30% to 50% and labor 20% to 30%.

Restaurant Level Profit Margins of Public Chains

Restaurant Level Profit Margins (Latest Reported)

Chain	Margin	Period
Dutch Bros	About 31%	Q2 2026
Wingstop (company)	About 26.7%	Q2 2026
Taco Bell (company)	25.9%	Q2 2026
Cava	25.7%	Q2 2026
Chipotle	25.2%	Q2 2026
Dave and Buster’s (store)	23.5%	Fiscal Q2 2026
Shake Shack	23.0%	Q2 2026
Olive Garden	20.4%	Quarter to Aug 2026
Portillo’s	21.7%	Q2 2026
The Cheesecake Factory	About 20%	Q2 2026
Kura Sushi	19.1%	Fiscal Q3 2026
First Watch	18.8%	Q2 2026
Chili’s	18.6%	Fiscal Q4 2026
LongHorn Steakhouse	18.0%	Quarter to Aug 2026
Jack in the Box	17.6%	Fiscal Q3 2026
BJ’s Restaurants	17.2%	Q2 2026
Texas Roadhouse	16.4%	Q2 2026
Sweetgreen	13.1%	Q2 2026
Darden fine dining	13.0%	Quarter to Aug 2026
Denny’s (company)	12.6%	Q3 2025
KFC (company)	12.0%	Q2 2026
Domino’s US company stores	About 12.0%	Q3 2026
Papa John’s company stores	About 11.2%	Q2 2026
Maggiano’s	10.3%	Fiscal Q4 2026
Pizza Hut (company)	2.2%	Q2 2026

Franchise Profit Margin Statistics

• McDonald’s earned $15.35 billion in total restaurant margins in 2025, up 5%.
• McDonald’s franchised margins reached $13.93 billion, about 84.2% of franchise revenue.
• McDonald’s company operated margins reached $1.42 billion.
• McDonald’s operating margin was 46.1% in 2025.
• Restaurant Brands International adjusted operating margin was about 28.4%.
• Domino’s supply chain operating margin was 20.4%.
• Franchisee pre tax margins run 3% to 5%.
• Food plus labor costs for franchisees rose 36% since 2019.
• At least 10 large multi unit franchisees filed for bankruptcy in 2026 so far.
• 86% of franchise operators raised prices by 1.5% to 8% in 2025, and 14% by more than 8%.

Restaurant Cost Structure and Profit Margin

• Food and beverage cost runs a median 32% of restaurant sales.
• Full service labor costs run a median 36.5% of sales and limited service 31.7%.
• Prime cost runs 58.5% at quick service restaurants and 61.9% at full service ones.
• Card processing is the third largest operating expense for most restaurants.
• US swipe fees passed $187 billion in 2024, up more than 50% since 2020.
• 66% of operators say card fees rose over two years, by 9.4% on average.
• The average family health insurance plan cost $26,993 in 2025, up 6%.
• 86.6% of operators saw food costs rise in the first half of 2026.
• 11% of operators saw food costs rise more than 15%.
• 78% expect more food cost increases in the second half of 2026.
• 77.1% of operators saw labor costs rise in the first half of 2026.
• 64% of operators run under full staffing capacity.
• 82% of operators had higher food costs in 2025, and 68% blamed tariffs.
• Two thirds of operators call tariffs a major strain.
• More than 80% call card fees or energy costs a major strain.
• Food costs sit more than 35% above pre pandemic levels.

Delivery Commissions and Restaurant Profit Percentage

• Delivery apps charge 15% to 30% commissions, and owners report a true cost of 30% to 40% per order.
• Uber Eats charges 20%, 25% or 30% depending on the plan.
• A $10,000 monthly delivery volume at 30% costs $3,000 in commissions.
• First party online ordering margins run 64% higher than third party delivery.
• Third party delivery makes up 0% to 10% of revenue for 47.2% of operators.
• 5.6% of operators get more than 40% of revenue from delivery apps.
• About 75% of restaurant traffic is off premises.
• 65% of limited service operators offer delivery.

Menu Prices, Wages and Tariffs

• Food away from home prices rose 3.5% in the year to September 2026.
• Full service menu prices rose 3.8% and limited service 3.2%.
• Midwest menu prices rose 4.3%, the fastest of any US region.
• Food away from home prices are forecast to rise 3.7% in 2026.
• Beef prices are forecast to rise 5.5% in 2026 after a 15% jump in December 2025.
• Retail beef averaged $9.64 a pound in April 2026, up about 13%.
• 68 US jurisdictions raised minimum wages on January 1, 2026.
• 57 US jurisdictions reach a minimum wage of $17 or more in 2026.
• The California $20 fast food wage raised pay about 18% and menu prices about 3.7%.
• Chipotle estimated a 60 basis point hit from tariffs.
• 64% of operators believe tariffs will weaken sales.

Restaurant Industry Statistics Behind Profit Margins

• US restaurant sales are forecast to reach $1.55 trillion in 2026.
• Real restaurant sales growth is forecast at 1.3% in 2026.
• US food service and drinking place sales reached $92.9 billion in September 2026.
• Restaurants capture 53% of the household food dollar.
• 40% of consumers are reducing restaurant visits.
• 60% of operators saw softer traffic in 2025, and 15% saw gains.
• 49% of operators saw traffic gains by mid 2026, up from 28% at the start of the year.
• The restaurant industry is forecast to employ 15.8 million people in 2026.
• The first year restaurant failure rate fell to 0.9% in 2025 from a 12.3% peak in 2021.
• 53% of tracked restaurant concepts posted positive same store sales in Q4 2025.
• Quick service same store sales fell 0.2% and fast casual 1.1% in Q4 2025.
• 54% of households earning under $75,000 would visit restaurants more frequently for better prices.
• 71% of franchise operators expect flat traffic in 2026.

Restaurant Profit Margin Statistics by Country

UK

• UK restaurants earn 3% to 8% as independents, 5% to 10% as casual dining chains and 6% to 12% as quick service.
• The UK National Living Wage rose to £12.71 in April 2026, adding £1.4 billion in hospitality costs.
• The April 2025 employer National Insurance change cost hospitality about £1 billion.
• UK hospitality lost 84,000 jobs after the October 2024 Budget.
• UK hospitality closed 1,839 sites and opened 1,794 in Q2 2026.
• The UK had 98,564 licensed sites at the end of June 2026.
• UK hospitality outlets sit 14.3% under March 2020 levels.
• UK restaurant like for like sales rose 2.4% in August 2026.
• UK hospitality posted 16 straight months of flat or falling real terms sales.

Canada

• 41% of Canadian restaurant operators are losing money or breaking even, up from 36%.
• 64% of Canadian operators report lower profitability than a year ago.
• Canadian restaurants report an average 10.4% profit margin in an operator survey.
• 71% of Canadian restaurants raised menu prices, by 13% on average.
• Canada is forecast to lose 1,500 to 2,500 restaurants net in 2026.
• Canadian food service generates $125 billion in sales and employs 1.2 million people.

Australia

• 12.03% of Australian cafes, restaurants and takeaways closed in the 12 months to July 2026, about 1 in 8.
• The Australian closure rate across all industries is 6.69%.
• The Australian hospitality award wage rose 4.75% in July 2026.
• Australian restaurant electricity costs rose more than 25% in a year.
• Australian delivery commissions run 25% to 30%.

India

• Indian restaurants earn EBITDA margins of 8% to 18%.
• Indian restaurant food costs run 28% to 35% and staff costs 18% to 25%.
• Indian restaurant rent runs 8% to 15% of revenue, rising to 15% to 20% in premium locations.
• High street rents in Indian metros rose 10% to 25% in two years.
• The Indian food service market reached $85 billion in 2025 and is forecast to pass $150 billion by 2030.
• Mumbai restaurants plan 10% to 15% menu price increases.

Germany

• German restaurant real sales sit 17.4% under 2019 levels.
• German restaurant personnel costs rose 34.4% between 2022 and 2025.
• German restaurant food costs rose 27.1% and energy costs 27.6% over the same period.
• VAT on German restaurant food rose from 7% to 19% in January 2024.

How Restaurants Improve Profit Margins

• 69% of operators use or pilot AI for back office reporting, up from about 25% at the start of 2026.
• 62% of AI users report lower labor costs.
• 88% of AI users save time every week.
• 82% of operators cut costs in 2025.
• 76% reduced food waste and 68% explored new suppliers.
• 38% removed low margin dishes from the menu.
• More than a third of operators adjusted portion sizes.
• 52% of operators raised menu prices in mid 2026, down from 66% at the start of the year.
• 71% plan to invest in kiosks in 2026.
• Handheld POS improves table turns by 15% to 20%.
• Restaurants with zero general manager turnover saw a 1.0 point traffic lift and 22 points less hourly churn.
• Restaurants that added online ordering saw sales rise 18% on average.

Marketing spend shapes margins too. Our Google local SEO statistics show how restaurants win direct orders from search, which cuts the share of sales lost to delivery commissions.

Restaurant Profit Margin FAQs

What Is the Average Restaurant Profit Margin?

The average restaurant net profit margin is 3% to 5%. The median US full service restaurant earned 2.8% before taxes and the median limited service restaurant 4.0%.

Which Type of Restaurant Has the Highest Profit Margin?

Bars, nightclubs, pizzerias and ghost kitchens lead with margins of about 10% to 20%, thanks to low ingredient costs on drinks and pizza or low labor and rent in delivery only kitchens.

Which Type of Restaurant Has the Lowest Profit Margin?

Small cafes average about 2.5%, and full service restaurants run 3% to 5% because labor takes more than a third of sales.

What Is a Good Restaurant Level Margin?

Leading chains run restaurant level margins of 18% to 26%. Chipotle earned 25.4% in 2025 and Cava 24.4%.

What Is a Good Prime Cost for a Restaurant?

Prime cost (food plus labor) runs about 58% to 65% of sales. Profitable restaurants keep labor near 30% to 34%.

Are Restaurant Profit Margins Falling in 2026?

Yes for many operators. 42% lost money or broke even in 2025, and chains such as Chipotle, Sweetgreen and Texas Roadhouse reported lower restaurant margins than a year earlier.

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