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.
Written by the Dumb Bambi Editorial Team and reviewed for clarity and calculation accuracy.
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.