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How normal is the net profit rate of the catering industry?
1, the net interest rate of the catering industry is generally 8- 10%, which is normal.

2. Calculation method of net profit rate of catering industry:

Net profit = gross profit margin 69.35%- personnel expenses 18%- water and electricity expenses 5%- lease expenses 25%- amortization expenses 8%- other expenses 5% = 8.35%.

3. The food cost in the catering industry is 20%-30%.

4. Personnel expenses generally account for 18% of turnover.

5. The cost of water and electricity generally accounts for 5% of the turnover.

6. Amortization expenses, renovation and equipment input expenses are amortized for 5 years, accounting for 8% of the turnover.

7. Rental expenses generally account for less than 25% of turnover.

8. Other expenses, logistics expenses and publicity expenses account for 5% of the turnover.

9. The catering business tax is 5.65%, that is, gross profit margin = turnover-food cost-business tax = 69.35%.

Extended data:

Calculation of food cost rate in catering industry;

1, cost rate = cost volume ÷ turnover × 100%

2. Gross margin = gross margin ÷ turnover × 100% = 1- cost rate Gross margin+cost rate = 100% = 1 the ratio of gross margin to turnover (sales) indicates how much expense coverage and profit release interval can be extended in order to achieve a certain sales volume.

3. Gross profit margin of sales = (operating income-operating cost) ÷ operating income×100% cost gross profit margin = (operating income-operating cost) ÷ operating cost×100% Generally, only sales gross profit margin is calculated, and cost gross profit margin is only used to calculate operating profit generated by unit cost.