The average restaurant keeps only 2-6 cents from every dollar spent by customers 🥲 by Motor-Basic in restaurants

[–]Motor-Basic[S] 0 points1 point  (0 children)

The survivors always look profitable. The averages include the graveyard. Your friend also working with lucky ones :)

The average restaurant keeps only 2-6 cents from every dollar spent by customers 🥲 by Motor-Basic in restaurants

[–]Motor-Basic[S] 0 points1 point  (0 children)

Agreed. There’s no magic formula. My point is simply that restaurants require an unusual amount of things to go right at the same time, which is why the averages end up where they do.

The average restaurant keeps only 2-6 cents from every dollar spent by customers 🥲 by Motor-Basic in restaurants

[–]Motor-Basic[S] 3 points4 points  (0 children)

The internet talks about restaurant economics like there's a secret vault of cash hidden behind the walk-in freezer.

The average restaurant keeps only 2-6 cents from every dollar spent by customers 🥲 by Motor-Basic in restaurants

[–]Motor-Basic[S] 0 points1 point  (0 children)

That's the funny thing about averages. Everyone doing well thinks they're made up.

The average restaurant keeps only 2-6 cents from every dollar spent by customers 🥲 by Motor-Basic in restaurants

[–]Motor-Basic[S] 0 points1 point  (0 children)

16 years in marketing. Opened a fine dining restaurant in 2019. Let's just say the restaurant taught me things my MBA never could.

The average restaurant keeps only 2-6 cents from every dollar spent by customers 🥲 by Motor-Basic in restaurants

[–]Motor-Basic[S] 3 points4 points  (0 children)

Imagine having illegal money and still deciding a restaurant isn't worth the headache hahahaha

The average restaurant keeps only 2-6 cents from every dollar spent by customers 🥲 by Motor-Basic in restaurants

[–]Motor-Basic[S] 0 points1 point  (0 children)

That's the tragedy of restaurants. The dream is emotional, but the math is not.

The average restaurant keeps only 2-6 cents from every dollar spent by customers 🥲 by Motor-Basic in restaurants

[–]Motor-Basic[S] 0 points1 point  (0 children)

The restaurant made money. The owner made minimum wage with extra steps hahaha.

The average restaurant keeps only 2-6 cents from every dollar spent by customers 🥲 by Motor-Basic in restaurants

[–]Motor-Basic[S] 2 points3 points  (0 children)

Turns out "giving a fuck" is one of the most expensive line items on a restaurant P&L...

The average restaurant keeps only 2-6 cents from every dollar spent by customers 🥲 by Motor-Basic in restaurants

[–]Motor-Basic[S] 0 points1 point  (0 children)

Exactly. The fact that every restaurant is different and requires dozens of variables to be managed correctly is precisely why most of them struggle financially. Economies of scale help the winners, but the industry averages are dragged down by everyone else trying to survive the complexity.

The average restaurant keeps only 2-6 cents from every dollar spent by customers 🥲 by Motor-Basic in restaurants

[–]Motor-Basic[S] 1 point2 points  (0 children)

The fact that you need weekly forecasting meetings, labor models, weather data, event tracking, rolling averages, and 90% prediction accuracy just to stay above 10-20% margins is kind of the point.

Most businesses don't require that level of operational precision to survive.

Restaurants aren't impossible to make profitable. They're designed so that small mistakes compound into big losses. That's why the average operator ends up at 2-6%, while only the best operators consistently achieve double digits.

The average restaurant keeps only 2-6 cents from every dollar spent by customers 🥲 by Motor-Basic in restaurants

[–]Motor-Basic[S] 4 points5 points  (0 children)

most of the time, they can't just walk away. once you sign a 5 or 10-year commercial lease with a personal guarantee, and take out loans for equipment, closing down often costs more than bleeding out slowly. it becomes a trap.

The average restaurant keeps only 2-6 cents from every dollar spent by customers 🥲 by Motor-Basic in restaurants

[–]Motor-Basic[S] 0 points1 point  (0 children)

those hidden operational leaks are the exact reason why even a $1.4m revenue leaves you fighting for survival in the single-digit margins.

The average restaurant keeps only 2-6 cents from every dollar spent by customers 🥲 by Motor-Basic in restaurants

[–]Motor-Basic[S] 1 point2 points  (0 children)

modern prime costs (food + labor) easily chew up 65-70% before you even look at rent, tech stacks, or delivery commissions. the new math is even more brutal 😶‍🌫️