Restaurant Freedom Academy ยท Free Tool
Will This Deal Work?
A reality check on whether the restaurant deal in front of you can actually make money, before you sign anything. Put in your real projected numbers and get an honest read, including what's left at the end.
Read this first
These are industry benchmark ranges, not your numbers. Only you can find out what your concept will really do in your market, and that takes homework: study comparable restaurants near you, talk to owners who have done it, and pressure-test your assumptions before you trust them.
A few facts worth sitting with:
- Small single-unit independents typically run $25k to $75k a month ($300k to $900k a year).
- Nearly every cost moves as a percentage of sales. The big three are food, labor, and rent.
- Food and labor together are about two-thirds of everything you'll spend. Get those two right and most of the battle is won.
- After everything, the average restaurant keeps only 3% to 9% in profit. The margins are thin, so every number matters.
Be conservative. When you are not sure, use lower sales and higher costs. You want reality to come in better than your plan, not worse.
The big numbers
Start with your projected monthly sales. We'll fill the rest with mid-range industry estimates so you have a realistic starting point, then change any number to match your plan.
Small independents run about $25k to $75k a month. Be honest, and lean toward the low end of what you expect.
Healthy occupancy is 6% to 10% of sales, and lower is safer. Include base rent, CAM, taxes, and insurance on the space.
Usually 25% to 35% of sales, depending on your service model. Include payroll taxes and your own pay.
Usually 28% to 35% of sales. This is what you pay for what you sell (COGS).
The rest of the costs (optional, leave blank and we'll estimate them)
Leave these blank and we fill them from industry ranges, along with card processing (about 3% of sales), supplies (about 3%), and admin (about 3%).
2% to 5% of sales.
1% to 3% of sales.
3% to 6% of sales.
1% to 3% of sales.
If you financed your build-out or equipment, put the monthly payment here. There is no benchmark, it depends on what you borrowed.
This tool gives industry-benchmark estimates for planning only. It is not financial, accounting, tax, or legal advice. Always run your real numbers and your lease past a CPA and an attorney before you sign anything.