How Much Do Restaurants Make in a Day? A Look at Daily Earnings
As the restaurant industry gets more competitive, owners often lose sleep. They think about how to stand out with unique designs and tasty menu items.
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
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 make more money during weekends. Sales from Friday to Sunday make up 54% of the average profit margin weekly. These restaurants include a fine dining establishment and a quick-service restaurant.
The Revenue Streams of Restaurants
A restaurant’s income doesn’t come from food sales alone. Menu items bring in most of the revenue, but beverages usually have higher profit margins. This includes alcohol, specialty drinks, and coffee. Some places host events. They also offer catering services and sell branded products to increase profits Diversifying revenue streams helps restaurants maintain steady income even during slower periods.
Seasonal changes and holidays can significantly impact daily revenue. For example:
- Summer & Holiday Seasons – Increased tourism and holiday gatherings lead to higher sales.
- Winter Slumps – Cold weather and post-holiday budgets can slow down business.
- Special Events – Valentine’s Day, New Year’s Eve, and local festivals often result in peak earnings.
| Factor | Impact on Revenue |
| Holidays | High sales boost |
| Off-Seasons | Lower customer turnout |
| Location | Influences foot traffic |
The restaurant’s location plays a critical role in sales. A high-traffic urban area may generate thousands in daily revenue, while a rural eatery may rely on weekend diners. Understanding these factors helps restaurants maximize their profits year-round.
Factors to Consider in Restaurants Earnings
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
Menu items at full-service restaurants, like steaks and appetizers, are pricier. This leads to 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
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. Quick-service, full-service, or average restaurants can all earn good profits daily.
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.
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How Much Do Restaurant Owners Make Daily?
Restaurant owners earn about $400 to $600 each day. This is based on an average net profit of $1,350 per restaurant daily.
In profitable businesses, owners take less than 50% of the restaurant’s daily profit [1]. So, that makes around $155,000 per year. Many factors matter, such as restaurant size, location, menu items, and amenities.
Challenges Facing Restaurant Owners
Running a restaurant is tough. Financial pitfalls are one of the biggest challenges. High food costs, unpredictable labor expenses, and rent hikes can quickly eat into profits. Poor inventory management and excessive waste also contribute to financial strain. To avoid these pitfalls, restaurant owners should track expenses closely, negotiate with suppliers, and optimize portion control to reduce waste.
Economic downturns can further challenge profitability. Inflation, rising food costs, and reduced consumer spending often lead to lower sales. In recessions, diners often eat out less. This change forces restaurants to tweak their prices and menus. Fine-dining establishments tend to suffer more than casual eateries, as people seek budget-friendly options.
| Challenge | Impact on Business | Solution |
| Rising Food Costs | Shrinks profit margins | Adjust menu pricing, find alternative suppliers |
| Economic Downturns | Lower customer spending | Offer promotions, focus on takeout |
| High Operational Costs | Reduces profitability | Streamline labor and reduce waste |
To stay profitable in tough times, restaurants should:
- Diversify revenue streams
- Build customer loyalty
- Embrace technology, like online ordering and delivery services.
A flexible business model helps restaurants adjust to changes in the economy. This way, they can survive even during tough times.
| Check out: How Much Does It Cost To Buy A Restaurant? |
Are Restaurants Profitable?
Yes, restaurants are profitable as long as they manage to maintain a 10% gross margin. Running a restaurant can be very profitable. However, it takes a lot of effort, hard work, and time to be successful.
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. Many restaurants rely on their menu, employee pay and benefits, utility costs, and other expenses for profitability.
If restaurant owners maintain the 10% gross margin or achieve 20%, that’s a good sign that the business is profitable. Refer to our fast food statistics for more information.
FAQs on How Much Do Restaurants Make in a Day
How can I increase my restaurant’s daily profit?
To boost your restaurant’s daily profit, try these steps:
- Optimize the menu.
- Improve customer service.
- Boost your social media presence.
- Offer 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 want to open your own restaurant someday, you now understand what to consider. You also know how much different types of restaurants can earn.
Choose quick service or dine-in, but focus on maximizing profit. Boost your social media, provide great service, and serve a tasty 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/
