Economics Of A Restaurant

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[Ganeshvudumula]

Its not just limited to restaurant business, for any business to make profits is understand the revenue & then need to take actions according to that. Everything depends on that one legendary equation: revenue- cogs- operating expenses- taxes= profit.

[nitinpanditrao]

This is on paper

include commission of ever online apps as oyo he takes away 35% on booking also, if you join
and in small cities now a days even auto take commissions from restaurants to bring customers to the hotel. So profit ratio is only 5%

[Sharma-xwml]

Everyone who watches Tushar's half fried knows theres a 10% "machine kharab ho gayi" expense 😅

[dhavalfaldu]

Small street food shop earning very very good

[percypavas]

Is he selling prepacked food?
Did not consider fuel, which is another cost?
Packaging is a big cost of a restaurant also delivers.
Also 10% in salaries is only possible if your restaurant is busy and packed throughout the day, a luxury most restaurants do not enjoy. Salaries easily take about 20-25%.

[jollygoodfellaa]

He is throwing numbers from air. You cannot generalise these costs. Every restaurant has a different model which works for them.

[rohitprabhu]

Aggregator's Commissions ? 25% to 40%. You forgot to mention that.

[travellers]

Utter BS. Hope bones taking these here and there percentages to heart. Total miseducation for anyone looking to think on the space

[marcusboys]

Well, 20% gross profit based on this chart wont make any long establishment survive. Take simple example, he didnt gas electricity waste–leftover, i dont even to mention your business income tax

[THUDL]

This could have been more accurate by calling which are fixed op ex and variable op ex, so audience knows which will be risky with no scale and which will fall with scale

[rajeshchheda]

Local Govt taxes and managing local environment like police, municipality and anti-social elements eats huge percentage.

[NiteshGupta-ooxn]

No restaurant can ever make 20% on earth

[DaTruth]

20% profit??
He forget to add 5-15% service charge (if any)

[BulbDrama]

You mean every pizza pays salary to the person cooking it?

[vinaykumarsingu]

Whatif the restaurant made only as much of their rent in the month. All these %s will go up in the air.

[bibinvmohan]

Idiotic calculation, if he is saying the real cost.

[trendnyt]

He is an idiot.. only in villages rent is 10 %

[NiteshGupta-ooxn]

Baap ka business hai uska isliye he don't know anything