Restaurant Margin Question

[slow99]

What kind of margins do private restaurants hit? Obviously, I can lookup (and have) publicly traded comps and get numbers - I have to think that those big guys have economies of scale that the smaller mom and pops don't have.

I'm curious about sit down restaurants, with a full bar - a smaller bar waiting area and seating for ~100. This would be a genre that cannot be found anywhere in DFW ... average food ticket per person probably in the $25 range, of course higher with alcohol. I'm kind of thinking 3-4% net, does sound about right? What about operating (EBIT) margin? Thanks in advance.

[bcoop]

Leaving for a meeting but will respond later.

[slow99]

Thx

[YALE]

I'll give you 6% to be my student loan lender.

[Geor!]

Opening up the first Laotian joint in town, dude???

[slow99]

Leaving for a meeting but will respond later.

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[Geor!]

Opening up the first Laotian joint in town, dude???

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[Sean88gt]

My brother in law runs Fearing's at the Ritz, I'll ask him and get back with you.

[Slowhand]

I'll go scrounge through some old client files tomorrow at work if I have time, have to imagine we've handled a restaurateur's divorce at some point and I should have plenty of financials and comp numbers to throw your way.

[bcoop]

...

Sorry Jody, I've been swamped and haven't been on much.

I assume you're looking for the rule, and not the exception? Anyone is doing good to see 15-17% margins, I'd say average is around 8-9, maybe slightly less. There are just so many factors. Concept, demographic, location, food cost, labor cost, etc.

The guy I was with this morning was seeing 12%, single location (Italian), no liquor. Beer and wine only.

[slow99]

Sorry Jody, I've been swamped and haven't been on much.

I assume you're looking for the rule, and not the exception? Anyone is doing good to see 15-17% margins, I'd say average is around 8-9, maybe slightly less. There are just so many factors. Concept, demographic, location, food cost, labor cost, etc.

The guy I was with this morning was seeing 12%, single location (Italian), no liquor. Beer and wine only.

No worries, thanks for the reply. I assume those numbers are net margin, not EBIT margin. This concept would probably be in Lakewood or Knox Henderson area, full bar ... if it ever gets past the idea/due diligence phase.

[talisman]

No worries, thanks for the reply. I assume those numbers are net margin, not EBIT margin. This concept would probably be in Lakewood or Knox Henderson area, full bar ... if it ever gets past the idea/due diligence phase.

Looking at this for yourself?

[slow99]

Looking at this for yourself?

Investor/partial owner. It's an idea from our old neighborhood in SF. Place was always every visitors' favorite place they'd ever been and always had a line from an hour before opening until close 7 days a week. There's nothing like it here. Just have a few emails going back and forth at the moment.

[talisman]

Investor/partial owner. It's an idea from our old neighborhood in SF. Place was always every visitors favorite place they'd ever been and always had a line from an hour before opening until close 7 days a week. There's nothing like it here. Just have a few emails going back and forth at the moment.

Sounds cool, GL. SF has some great places to eat. Not trying to be a negative nancy, but I'm sure you are aware of the failure rates for restaurants.

[bcoop]

Yes, Net margins.

Jody, feel free to PM me or hit me up on Facebook. I'm more than happy to meet up with you any time to discuss. I'll help in any way I can, and I can put you with the right people of this comes to fruition, as to where to get your equipment, and who to use for the design. A close personal friend of mine is a a consultant/designer, etc.