Gross Profit
What Is a Good Gross Profit Margin for a Restaurant?
A practical explanation of hospitality GP targets and the factors that affect them.
Gross profit is the money left on the table — literally — after you deduct what the food and drink cost you. It pays for everything else: rent, wages, energy, marketing, HMRC and, eventually, you.
The rough rules
- Food GP target: 65–72% - Wet GP (draught, wines, spirits): 68–75% - Cocktails: 78–82% - Coffee: 85%+
Why the range matters
A gastro pub selling wagyu doesn't need the same GP as a coffee shop. A high-volume café can live on tighter GP because covers turn quickly. A destination restaurant with a slow lunch needs headroom.
What eats your GP
Waste, over-portioning, generous specs, aggressive discounting, staff drinks, delivery commissions and unpriced menu changes. Any of these can quietly knock 3–5 points off in a quarter.
Fix it in the right order
1.Recost your top sellers with today's supplier prices. 2. Weigh a week of portions vs. spec. 3. Kill or reprice anything below your GP floor. 4. Only then talk about a menu-wide price rise.