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Resources/Benchmarks
Benchmarks

Know what good
looks like.

The industry numbers every operator should measure against — revenue, margins, costs, and the ratios that decide whether a restaurant makes money.

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$900k–$1.3M
Average annual revenue, full-service restaurant
3–9%
Net profit margin, full service (6–12% quick service)
28–35%
Food cost as % of sales
28–33%
Total labor incl. taxes & benefits
< 60–65%
Prime cost target (food + labor)
6–10%
Occupancy cost ceiling as % of sales
15–30%
Marketplace commission per delivery order
5×
Cost of acquiring a new guest vs. retaining one

How much revenue does the average restaurant make?

Full-service restaurants in the US average roughly $900,000 to $1.3 million in annual revenue, with wide variance by market, seat count, and dayparts served. Quick-service concepts skew higher per labor hour; food trucks and kiosks run $250k–$500k. Revenue alone says little — a $1.5M restaurant at a 2% margin earns less than an $800k restaurant at 8%.

The ratios that matter more than revenue

Prime cost— food plus total labor — is the operator's scoreboard: healthy restaurants hold it under 60–65% of sales. Break it down as food at 28–35% and labor at 28–33%, then add occupancy under 10% and you've accounted for the big three. What's left after everything — the net margin — averages 3–9% for full service. On these spreads, a few points of commission leakage to delivery marketplaces (15–30% per order) is frequently the difference between the top and bottom of the margin range.

Benchmark yourself monthly, not annually: cost a signature recipe with the food cost calculator, run the month through the profit margin calculator, and check what commissions took with the commission savings calculator. Operators who can quote these numbers run restaurants that earn them.

FAQs

Frequently asked
questions

What is the average revenue for a restaurant?
US full-service restaurants average roughly $900k–$1.3M per year; quick service often runs higher per location, and food trucks $250k–$500k. Location, seats, and dayparts drive the spread more than cuisine.
What is a good profit margin for a restaurant?
3–9% net for full service and 6–12% for quick service. Above 10% for full service is exceptional and usually reflects strong direct-channel sales and tight prime cost.
What should prime cost be in a restaurant?
Under 60–65% of sales — food at 28–35% and total labor at 28–33%. It's the most controllable block of restaurant costs and the first number to fix when margins slip.
How do delivery commissions affect these benchmarks?
A 25% commission on a third of your revenue takes roughly 8 points off blended margin — often the entire net profit. Moving repeat orders to a commission-free direct channel is the fastest structural fix.

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