Small Restaurant
$45K – $75K
Owner-operator, single location, under $600K revenue.
Industry Intelligence
Restaurant Industry Scorecard
Overall
Moderate
- Profitability
- Scalability
- Startup Difficulty
- Recurring Revenue
- Recession Resistance
Restaurant Economics At A Glance
| Metric | Value |
|---|---|
| Revenue Range | $450K – $1.6M |
| Profit Margin | 4% – 12% |
| Owner Salary | $55K – $120K |
| Employees | 12 – 28 |
| Startup Cost | $275K – $750K |
| Valuation Multiple | 1.8x – 3.2x SDE |
Ranges reflect 25th–75th percentile across 680+ U.S. independent restaurants. See methodology
Average Restaurant Revenue
How much independent restaurants earn — distribution, by concept type, and key drivers.
Revenue distribution
Bottom 25%
$450K
Median
$850K
Top 25%
$1.6M
Revenue by Type
| Restaurant Type | Revenue |
|---|---|
| Fast Casual | $920K |
| Casual Dining | $1.1M |
| Fine Dining | $1.8M |
| Food Truck | $380K |
Revenue Drivers
Location
Urban high-traffic sites drive 30–50% higher revenue than suburban locations.
Seating capacity
Revenue scales with covers until kitchen or service bottlenecks cap throughput.
Table turnover
Fast casual averages 3–4 turns per day; fine dining often 1–1.5.
Average ticket size
A $2 increase in average check can add $80K+ annually at moderate volume.
Restaurant Profit Margins
Net margin benchmarks by performance tier and restaurant type.
Margin distribution
Poor
2–4%
Average
6–8%
Top Quartile
10–14%
Margin by Type
| Type | Margin |
|---|---|
| Fast Food | 6–10% |
| Casual Dining | 5–9% |
| Fine Dining | 8–14% |
Cost Breakdown
- Food Cost32%
- Labor Cost30%
- Rent8%
- Marketing4%
- Other18%
How Much Do Restaurant Owners Make?
Owner compensation by restaurant size and scale.
Average Restaurant
$75K – $110K
Established independent, $700K–$1.2M revenue.
Multi-location Owner
$120K – $250K+
2–4 units or strong single flagship doing $1.5M+.
Influencing Factors
- Ownership structure (sole proprietor vs. S-corp salary + distributions)
- Location and rent burden as % of revenue
- Number of locations and management layer
Restaurant Valuation Multiples
How independent restaurants are priced in the market.
Revenue Multiple
0.3x – 0.6x
median 0.45x
Used for high-volume, thin-margin concepts.
SDE Multiple
1.8x – 3.2x
median 2.4x
Standard for independent restaurants under $3M revenue.
EBITDA Multiple
2.5x – 4.5x
median 3.5x
Common for multi-unit or absentee-owned operations.
Example Valuation
- Restaurant Revenue
- $1M
- SDE
- $200K
- Valuation
- $480K
- Multiple
- 2.4x SDE
Benchmark Your Restaurant
See how your numbers compare to industry quartiles.
Benchmark Yourself
Compare your restaurant against industry quartiles.
Your overall rating
Average
- RevenueAverage
- Owner SalaryAverage
- Profit MarginAverage
Based on 680+ businesses U.S. restaurants (2025–2026). Methodology
Restaurant Types
Explore economics by concept type.
Industry Comparisons
Side-by-side economics vs. related food businesses.
Related Calculators
Run the numbers on your restaurant.
Frequently Asked Questions
How much revenue does a restaurant make?
Independent restaurants typically generate $450K–$1.6M in annual revenue, with a median around $850K. Fast casual averages ~$920K, casual dining ~$1.1M, and food trucks ~$380K. Location, seating, and average ticket size are the primary drivers.
What is a good restaurant profit margin?
A healthy net profit margin for an independent restaurant is 6–8%. Top-quartile operators achieve 10–14%. Below 4% is considered thin and vulnerable to cost shocks. Food and labor together consume 60–65% of revenue for most concepts.
How much do restaurant owners earn?
Owner-operators typically earn $55K–$120K annually, with a median around $92K. Small single-location owners often take $45K–$75K; established independents $75K–$110K; multi-location owners can earn $120K–$250K+ depending on scale and structure.
What is a restaurant worth?
Most independent restaurants sell for 1.8x–3.2x SDE, with a median of 2.4x. A restaurant with $1M revenue and $200K SDE might be valued around $480K. Revenue multiples (0.3x–0.6x) are sometimes used for high-volume, lower-margin concepts.