Restaurant Profit Estimator

1. Enter sales
Use total restaurant sales for one consistent reporting period.

2. Add product cost
Enter food and beverage cost consumed or sold for that period.

3. Enter labor
Include wages, payroll taxes, benefits, and other labor costs on the same basis.

4. Add occupancy and other expenses
Enter rent-related costs and remaining operating expenses.

5. Provide guest count
Use an optional cover count to estimate profit per guest.

6. Review profit drivers
Compare profit margin with total costs and prime cost ratio.

Operating profit = Sales − Food and beverage cost − Labor cost − Occupancy cost − Other operating expenses
Operating profit margin % = Operating profit ÷ Sales × 100
Prime cost ratio % = (Food and beverage cost + Labor cost) ÷ Sales × 100

The result excludes any items not entered, such as interest, income tax, depreciation, and extraordinary charges.

What the result means

Use the main result together with the supporting metrics to compare scenarios and identify the assumptions with the largest effect.

The result excludes any items not entered, such as interest, income tax, depreciation, and extraordinary charges.

Given
Given: $180,000 sales, $54,000 product cost, $60,000 labor, $18,000 occupancy, $27,000 other expense, and 6,000 guests.

Calculation
Total costs = $54,000 + $60,000 + $18,000 + $27,000 = $159,000. Operating profit = $180,000 − $159,000 = $21,000. Margin = $21,000 ÷ $180,000 × 100 = 11.67%.

Result
Operating profit is $3.50 per guest, and prime cost equals 63.33% of sales.