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How Much Do Restaurants Make In A Day

How Much Do Restaurants Make In A Day? Solved (2022)

Last Updated on September 13, 2022 by Shari Mason

As the restaurant industry becomes competitive over time, owners tend to have sleepless nights thinking of ways to stand out through unique designs and delicious menu offerings. 

But running a restaurant relying on innovation alone is challenging. It is crucial to make a restaurant grow and earn good profit. 

So how much do restaurants make in a day? Keep scrolling to find out.  

Average Sales Per Day of Restaurants 

hands holding money

In the US, an average restaurant makes approximately $1350 per day. It comes from around 47 transactions, with each customer spending around $27 daily. 

So, we can say that restaurants make about $40,500 monthly, which comes down to $486,000 annually. Looks promising, right? 

Fun Fact: Average restaurants in the US makes more money during weekends. Sales from Friday to Sunday make 54% of the average profit margin weekly. These restaurants include a fine dining establishment and a quick service restaurant. 

Factors to Consider

Restaurant Type

Restaurant businesses do not have the same gross margin. How much revenue a profitable restaurant makes depends on its type, menu pricing, overhead costs, total expenses, and so on. 

All-You-Can-Eat Restaurant

An eat-all-you-can (or buffet) restaurant offers various food options. It’s usually priced at around $25 to $75. Stand-alone buffet restaurants are cheaper than those that are inside hotels. So, their profit margin varies depending on the location.

Based on 47 transactions, buffet restaurants can make about $1175 to $3525 daily. 

Fast Food Restaurants 

A fast food restaurant is one of the popular profit-making restaurants. It has lower overhead costs compared to most restaurants. 

Since fast food restaurants have high customer volumes, they make higher profit margins. How much profit fast food restaurant makes also depends on the day. On a typical day, they can make around $10,000 and $12,000 and above on busy days.  

Full-Service Restaurants

Since menu items from a full-service restaurant are in the higher price range (like steaks and appetizers), it results in high-profit margins. 

For instance, a $60 steak containing the 50% goods cost makes a gross profit of $30 per order. So, $30 multiplied by 47 transactions (average basis) is equal to $1410 in average restaurant revenue on steak dishes alone. 

Bars

fancy bar

One of the profitable products in bars is obviously alcoholic drinks. Pubs, as well as bars and grills, do well in terms of gross margin. As a result, restaurant owners tend to do the same concept to boost their restaurant profits. 

Let’s examine the cost and profit analysis for some alcoholic beverages. For instance, a bar sells beer with 330ml per glass. A 20L keg of beer costs around $150, and a 20L keg makes 60 glasses of beer. 

If the bar sells the beer for $4.5 per glass, the average restaurant profit margin they can make is approximately $120 to $270, minus the $150 capital for the beer. 

Location

One of the crucial aspects of a restaurant business is location. How much restaurants make also relies on the environment and neighborhood. A good location plus impressive customer service and menu make a successful restaurant. 

A good location attracts a volume of customers – meaning more income. Be it quick-service restaurants, full-service restaurants, or an average restaurant, these establishments can make a good profit at the end of the day. 

Size of Restaurant

Aside from the location, one of the many factors that contribute to profit is the restaurant’s size. A small restaurant can earn less profit than a big restaurant for obvious reasons. 

Small restaurants can earn an average restaurant profit of $1350 per day. But, big restaurants can make more than that. 

How Much Do Restaurant Owners Make Daily?

Restaurant owners make around $400 to $600 daily, based on the average net profit ($1350) of the restaurant per day. 

In profitable businesses, owners take less than 50% of the restaurant’s daily profit [1]. So, that makes around $155,000 per year. But, there are a lot of considerations here, like the restaurant size and location, menu features, and amenities. 

Are Restaurants Profitable? 

Yes, restaurants are profitable as long as they manage to maintain a 10% gross margin. While an average restaurant can be really profitable, it takes a lot of effort, work, and time to operate a successful restaurant. 

But take note, sales and profit are different. Sales refer to the figure you make daily, while profit is the figure you make minus the expenses. The profitability of many restaurants depends on their menu, employee salary and benefits, utilities, and other expenses. 

If restaurant owners maintain the 10% gross margin or achieve 20%, that’s a good sign that the business is profitable. 

FAQs 

How can I increase my restaurant’s daily profit?

To increase your restaurant’s daily profit, you can start by optimizing the menu, improving customer service, boosting your social media presence, and offering delivery services.   

Where do restaurants make the most money?

Restaurants make the most money from their drinks, especially alcohol (if applicable). Spirits bring in the highest profit margin since the markup [2] is high. Also, it’s easy to upsell customers. The average restaurant revenue that comes with alcohol sales is 20% to 25% of the restaurant’s income. 

In Conclusion

A restaurant can make around $1350 per day, so it’s safe to say it’s a good business. If you plan on putting up your own restaurant someday, at least you have a better grasp of the factors to consider and how much the type of restaurant can potentially make.

Whether you opt for a quick service or a simple dine-in resto, you should prioritize optimizing your profit by boosting your social media, providing excellent service, and offering a delicious menu. 

And when that day comes, come back here and share with us how much your restaurant makes in a day. Good luck!

References:

1)https://pos.toasttab.com/blog/on-the-line/how-much-do-restaurant-owners-make 

2)https://corporatefinanceinstitute.com/resources/knowledge/accounting/markup/

Shari Mason

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