Can anyone advise me what gross & net profit percentages are the norm in the catering industry. Specificvally in this case a cafe?
Toni
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66% Gross as a guide
Hi Toni
When I was a catering student, many many years ago, we were taught that takings should be roughly divided into thirds, 33.3 for the food, 33.3% for wages etc. and 33.3% net profit. This was only recently confirmed by one of the TV chefs on a 'sort it out' programme.
This is, of course, rule of thumb. In a cafe one might expect the gross profit to be less as the prices will be relatively lower; in a fine dining environment one might expect to be able to increase the added value on the food.
A bit more detail
http://www.hmrc.gov.uk/bens/ben17.htm
Is a link to the Revenue's Business Economics notes on catering. They are a tad out of date and don't give percentages. There is, as yet, no Tactical Investigation Note on catering.