National Restaurant Association releases new data on restaurant sector profit margins

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Michelle Korsmo President & Chief Executive Officer at National Restaurant Association | Official website

National Restaurant Association releases new data on restaurant sector profit margins

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Dampened customer traffic and persistent high costs have continued to impact restaurant profit margins, according to a new report from the National Restaurant Association. The 2025 Restaurant Operations Data Abstract, released today, offers a detailed look at financial and operational realities for both fullservice and limited-service restaurants across the United States.

Drawing on data from more than 900 restaurants nationwide, the report covers key cost centers such as food and beverage expenses, salaries and wages, occupancy costs, utilities, marketing, and general operating expenses. The resource is intended to help operators assess financial risks and improve their business strategies in a challenging economic environment.

“In today’s margin-sensitive environment, visibility into cost structure is critical,” said Chad Moutray, chief economist at the National Restaurant Association. “This report helps operators understand where their resources are going and where they may have room to improve efficiency or redirect spending.”

Among its findings, the report notes that fullservice restaurants reported a median income before taxes of 2.8 percent of sales. Limited-service restaurants fared slightly better with a median pre-tax income of 4.0 percent of sales. Prime costs—which include food, beverage, and labor—accounted for a median of 65 cents out of every sales dollar in the limited-service segment. Labor remains the largest expense for many operators; payroll and benefits represented a median of 36.5 percent of sales in the fullservice sector.

The document breaks down results by various operational factors such as average check size, annual sales volume, location type, and community size. This approach allows businesses to benchmark performance against similar operations throughout the country.

The Abstract also features an “Analyze Your Operation” worksheet designed for users to compare their own financial data with industry benchmarks presented in the report. The tool aims to help restaurant owners spot discrepancies in their finances or operations so they can make informed adjustments moving forward.

Further details about the 2025 Restaurant Operations Data Abstract—including purchasing information—are available through the National Restaurant Association website.

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