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 How much a restaurant make in a day average, How much a restaurant make in a day aver

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silverhawk
post Nov 10 2021, 04:49 PM

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General Breakdown

30% Cost of goods (ingredients, take away packaging, etc)
30% Operations (rent, utilities, salary, etc)
30% Sales and Marketing (ads, promotions, discounts)

Remaining 10% is your profit


silverhawk
post Nov 11 2021, 12:58 AM

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QUOTE(jinn27133 @ Nov 11 2021, 12:16 AM)
30% sales and marketing ? Is it normal for a restaurant owner to spend so much on sales and marketing?
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Yes, why do you think grab takes a 30% cut? That number is not plucked out of thin air. Generally, marketing is not cheap and competition is high. So your ad costs can be expensive too to get the eyeballs of people on facebook/instagram. Then you have to consider if you want to pay to maintain SEO, or engage influencers, etc. Consider that discounts like lunch specials, technically also fall under this category.

Of course 30% is just a general guideline, can be lower/higher... but normally its within that range. If you have other factors that help you gain organic growth and customer loyalty then you may no need to spend so much.
silverhawk
post Nov 11 2021, 05:52 PM

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QUOTE(jinn27133 @ Nov 11 2021, 12:52 PM)
never thought of that, thanks alot for your insight.
But i currently looking at franchise brand more which they charge 2% of A&P on sales every month.

i would say 2 franchise brand to choose from.
1 really branded already with 6% royalties and 2%  A&P. 500-600k startup include everything
another one is not branded with only 2 stalls but the food is ok, review ratingg is 4.8+. thy charge only 3% royltties and with 250k startup (include eveything too)

wonder which has bigger chance to survive and maybe earn me some cash
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The problem with franchise is that you're very much at the mercy of the brand's marketing, so your ability to generate sales of your own is quite limited. However this also depends on the arrangement with the brand owners, I know some franchises are given more freedom.

Though keep in mind that even if well branded, you'll still need to spend some money and effort in local promoting, can't 100% rely on the brand. Better to go in with a mindset that you need to promote than to rely on external forces, otherwise you almost guarantee mati.

 

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