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Browse: Home / WORK / Business

How much does a good restaurant make a year?

nojuicy: How much does a good restaurant make a year?
We are thinking of opening a family restaurant. I was wondering about how much profit is made through a successful restaurant. I know the first few years are tough but after the restaurant is running smoothly how much on average would the restaurant make. It is a medium size restaurant designed for both fast food and seat down service with average food prices. Employees will be paid a modest wage not minimum wage. Any tips would be great also. More info the better thanks

Answers and Views:

Answer by Jack
Hm… it’s pretty hard work, lot’s of papers to deal with, taxes, food organisations checking the quality of the food – but I guess it’s worth it. the best possible business is a family business – if it’s a restaurant, then a family business is perfect. Most importantly even if you pay your cousins etc. the money still stays in the family. It’s important that you motivate your staff to do good work.

You question is hard to answer – because there are so many things that it depends on. The location, the number of people that will like the food, the atmosphere, the quality of the food, marketing and advertising, how big it is etc. In my opinion – if let’s say you have 100-200 customers per day, let’s say 150 – if one spends 10$ on average – that’s 1500 a day, take the taxes, employees, bills and everything else – maybe you stay with around 500 bucks a day or more, I’m not sure of pure profit. You need to make the entire calculations, and do it in per day, that way it’s easier to do the math.

When you’re calculating the possible income, always do the “worst possible scenario” – or “how much do I need to make in order to be on “zero” not in plus, not in minus financially”.

Good luck,
Jack

Answer by troublewolf54
Okay..I’m trying again.
I asked my room mate who is in business herself, but its a gift business.
it all depends on location, overhead and your menu. The first poster pointed this out. I also depends on exactly how many people you can serve..how busy your area will be. the prices of food differ from location to location.
The best thing to do is find someone who is a small business planner. Check out locations, get a rental price, how much it would cost to set up the inside kitchen taking the lions share. And if I’m not mistaken, all waitress are paid minimal wage and what they pay taxes on is figured out with tips included..not what they actually get, but what the government says they should be getting.
Aplace that sells mostly sandwiches and rinks will not make as much as one that sells full dinners. Or they could make more. But we did try and figure out some kind of idea..if you have 25 tables, lets say..you almost have to make over 1 million a year and that’s before expenses are taken out. A small place can do that, her family had a small meat market and did 1 1/2 million a year!
so find a small business consulant..thats the best thing to do!
Good luck and i hope I helped. I did promise! 😉

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