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Profit Margin on a cafe business?

Profit Margin on a cafe business?

Can anyone suggest what the right sort of profit margin would be average for a cafe business?  I'm looking at the figures for a client, and while it looks good in terms of profitability, I don't know what the correct expectation would be for this sort of trade.  They might be doing really badly by comparison with similar businesses!!

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20th Sep 2013 11:30

At least

60% (GP, not net)

 

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By Ange
20th Sep 2013 11:51

Gross Margin

I'd say a gross margin of 65-75 is nearer the mark, depending on where said café is trading, I have several of these clients on my books and they all fall into this range.

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20th Sep 2013 12:03

Gross Margin

I'd definitely say between 65% & 75%. I used to work for a large multi site independent café business that were based in shopping centres.

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30th Jan 2014 16:34

Cafe expenditure and income

Would you expect the same level of profit margin for a small cafe with seating for 20 and, say, an internal footprint of around 20 m2? 

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