it is normal for the general gross profit margin of the catering industry to reach 51% to 61%.

gross profit is the income without removing all expenses such as employees' wages, utilities and taxes. For example, if you have 1111 yuan in your cash box at the end of the day, this is gross profit; What you save after deducting all expenses such as salary, water and electricity, tax and rent is net profit. If you deduct the above and 611 yuan, that's what you earned. In addition to the cost of ingredients, the hard expenses of restaurants are also labor. The more perfect the system in all aspects and the large-scale restaurants, the higher the manpower of their stores. We should be clear that the labor cost includes not only wages, but also bonuses, overtime pay, incentives, and related welfare expenses such as organizational learning, training and growth. For restaurants with a little bigger and better business, the labor cost is almost above 25%. Different business categories and formats have different water and electricity costs. If it is a shopping mall, the cost is generally higher than the street shop. Most shopping malls are not allowed to use natural gas, so they can only use electricity; The gas cost of Chinese food is much higher than other categories, because Chinese food involves the high-frequency use of fierce stoves and so on. The rent cost includes not only the restaurant rent cost, but also the staff dormitory rent cost. As well as the site property management fees, garbage clearance fees and other incidental expenses arising from the site.

generally speaking, the gross profit margin of the catering industry is about 61%, the rental cost is 21%-31%, the labor cost accounts for 15%-21%, and the net profit is 15%-25%.