profit-margins

Profit Margins

3 articles to help your business succeed

Understand your gross, operating, and net margins — then improve them. UK restaurant benchmarks plus practical steps to keep more of what you earn.

💡Quick Tips for Profit Margins

  • Know your three key margins: gross profit (65-72%), operating (10-18%), and net profit (5-12%)
  • Identify margin leaks: waste, over-portioning, theft, and unnecessary comps can erode 3-5% of revenue
  • Improve margins through menu engineering before cutting costs
  • Negotiate supplier terms annually and get three quotes for your top 20 ingredients

Featured Article

Restaurant owner learning how to price a restaurant menu using tablet to calculate food costs
04/02/202612 min read

How to Price a Restaurant Menu: A Step-by-Step UK Guide

You spent three hours perfecting your new lamb shank recipe. The flavour is spot on. Your team loves it. But when someone asks what you'll charge, you freeze. Pick a number that feels right? Check wha...

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Frequently Asked Questions

What is the difference between gross and net profit margin?

Gross profit margin is revenue minus food cost (65-72% typical). Net profit margin is what remains after all costs — food, labour, rent, utilities, everything — typically 3-12%.

How can I quickly improve profit margins?

Three fastest levers: menu engineering to promote high-margin dishes, tightening portion control with standardised recipes, and optimising staff rotas to match forecasted covers. These can improve margins 2-5% within 30-60 days.

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