How Much MONEY do Restaurants REALLY Make?

Show this video at your next restaurant training meeting. Most people are surprised by the small amount of money left over after all the expenses are paid... especially the people who work in the restaurant! This video is a simple and fast explanation of what happens to the sales dollars that come into a restaurant.

#shorts #businessreal #restaurant

[private]

I bought 12 acres opened a bbq restaurant, then opened a pizza restaurant on the land. Next a coffee shop, bar, sushi, wine bar, bonfire sitting areas, soccer fields, taco shop, and a few mini ponys. Profit is about 2.1 million a year. Took an investment of 80k with the owner financing on the land. About to sell after 8 years for 5.6M

[Simonofcalifornia]

Don’t forget the credit card transaction fees that eat up to 3%

[omnomnomnomm]

sometimes i wonder how other competitors sell their products so cheaply (i own a small cafe), and turns out a lot of them cut their budget not from product quality, but from their employee's wage.

like they paid the LEAST amount and i've been told to do it too but fuck it, my employees are great people and they deserve what they deserve. i don't mind "losing" a little money if it's for their wellbeing.

[ItBeginsAgain]

I mean I rent my building 750 a month in a small town. Insurance 180 a month. Food costs $2500 a month estimated $3, 430 together. I don’t have employees, I use family. We slit the difference. I average between 20, 000 a month. So we slit 10, 000 each and after taxes I have around 8, 000 and then we Invest 2, 000 each back into the restaurant. I clear 5 to 6, 000 a month. Going strong for 10 years.

[tallbrian]

No one pays minimum wage except for tipped worker. I was a restaurant owner, did about 30K a month and when all the expenses were paid 1K was left but that was after paying depreciation of $4500. So $5500 profit or about $18 per $100.

[AshTheDuke]

Glad I learned this in a short video. Thank you so much, sir.

[leonfisher]

way to go yah Jerk!! you just crushed my dreams.

[Rainy_Day]

2% profit margin. Don’t open a restaurant. Do you realize how much in sales you need to make to earn a living.

[lxrocha]

I wish I was making $2 from a restaurant I owned. I found a spot that’s selling for 75k and has huge potential. Prime spot and they don’t even cater to the young customer base they have around them(college student) and don’t even do online ordering 😭

[christophergarcia]

30% food costs is actually pretty damn high.

[jack]

So food is not the Golden goose. What about the Bar and service bar?!
How much does having a clean and well organized restaurant and staff earn for the restaurant?

[mominthe]

I actually know one restaurant that was opened because one of the guys is a great cook-at home. Got investors to give him money. You guessed it less than 6 months and they were out of business. Investors got pennies back but the cooks family has a fully furnished commercial kitchen to lease out 🙄

[alexb]

40% on Expenses? That’s crazy high.
And no wonder there is so much resistance by business owners to increasing the minimum wage - 20% labour costs is very cheap. That would have to be a quick service restaurant, as a full service restaurant would generally be up around 35-40% labour costs.
I own a restaurant in Australia and my split is approx 42% labour, 27% food and beverage, 12% rent and expenses.

[dr.milikpertin]

A elementary school student also knows what you have shared

[nikx]

Way off!!
A properly run restaurant banks!!
Especially now cuz many restaurants gave up after pandemic so business be booming. Payroll is much higher so is food cost but if your garbage can eats more than your customers lock the door. If you open a small business restaurant be prepared to go all in, there is no middle ground when it comes to work ethic and passion on the food you serve.

[vatsvlogs]

Nicely explained 😅by splitting the dollar

[garysarnowski]

And here I thought because I know how to eat, I would know how to run a restaurant. Quote taken from the sopranos HBO show, restaurant owner Artie to Tony soprano 😂

[SomeDumbRandomUser]

soo ... when did youtube became a preschool?

[RT_Mulino]

I have a dream, to one day open a restaurant, Yeah i know all the difficoulties, but it's my dream..
My strategy is to work like 1/2 years, as a cook or something like that (i have a passion for cooking since i was 9)
After i get some money saved up like 10k/11k, i'm gonna buy my little property, problably on mortage, depends on the circumstances.
Renovate it, buy some food and all things i need with my saved up money.
Do some online ads and hang restaurant wavers everywere, to hopefully gain some clients, so at the start im gonna try to work alone, so that i dont have to pay Paychecks.
I hope it works out for me!
(Ps:i'm Italian so my english might not be great!)

[dawngallegos]

You did pretty good. Employees burn off profits in waste of items, theft and not charging items to guests….. so it is closer to 1.75- 3.00$ per ticket of two guests. In small towns for sure!