How to calculate restaurant profits?

How to calculate restaurant profits?

To calculate restaurant profit, you need to subtract total operating expenses from total revenue.

Here’s a simple formula for the calculation:

Profit = Total Revenue – Total Operating Expenses


Total revenue includes all the money a restaurant brings in, such as sales from food and drinks.


Total operating expenses include all the costs involved in running the restaurant, such as food and beverage costs, labor costs, rent, utilities, marketing and advertising, and miscellaneous expenses.


It’s important to keep track of both revenue and expenses on a regular basis to accurately calculate profit and make informed business decisions.