After food cost and payroll, what is actually left?
Compare the two line items that eat restaurant profit against the average.
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Estimated operating profit
4,400,000KRW
Operating margin 14.7% · Gross margin 63.0%
Purchases 11,100,000Fixed costs 14,500,000Profit 4,400,000
Break-even revenue
23,015,873
Sell this much to break even
Daily sales needed
767,196
Based on 30 days
Compared with the industry average
| Your store | Industry average | ||
|---|---|---|---|
| Cost ratio | 37.0% | 35.0% | 600,000 behind |
| Labor ratio | 30.0% | 28.0% | 600,000 behind |
| Operating margin | 14.7% | 12.0% | 800,000 ahead |
Where to cut
Bringing the cost ratio down to the industry average keeps 600,000 KRW more each month.
Industry averages are commonly used reference figures for retail and food service.
Show how this is calculated
Operating profit = sales − purchases (cost of goods) − fixed costs (rent + payroll + other) · Break-even revenue = fixed costs ÷ gross margin
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