Sales: how much does a restaurant generate?

When you open a restaurant, the question of figures is a constant preoccupation. With 1 in 2 restaurants closing their doors after just one year, it's imperative to monitor your financial ratios and anticipate your margins in order to last over time.

So, what can we expect? What is the average sales figure for a restaurant in France? What is the turnover of a 50-seat restaurant? How do you estimate average restaurant profits? And above all: how can you increase your revenues? Find the answers in this guide to sales.

What are restaurant sales?

💡A restaurant's sales are the total amount of money it generates through its activities.

These activities include all restaurant sales (meals, drinks, merchandise), plus additional costs (reservations, deliveries or tips).

In most cases, sales are calculated over a given period: one year, six months, one month, and so on. 

Be careful not to confuse a restaurant's sales with its profits. 

Profit is the amount of money a restaurant earns once all expenses have been subtracted (restaurant rent, employee wages, utilities, raw materials, equipment, taxes, etc.).

🤓 So it's all a question of balancing earnings and expenses so thata restaurant can achieve its ideal margin.

What is the average restaurant sales figure?

While it's natural to want to know the average turnover of a restaurant, keep in mind that these figures vary enormously!

With over 214,000 establishments in France (including foodtrucks, caterers, bars...), the sector is highly disparate(Source).

💡Selon HelloWork and Combothe average sales figure for a restaurant in France is €16,000 per month, and €14,000 per month for a fast-food restaurant.

What is the average restaurant profit?

💡In France, a restaurant's average profit would be between 2% and 10% of annual sales.

Once again, profit varies according to restaurant type, location, business model, cost management...

According to the Union des Métiers et des Industries de l'Hôtellerie (UMIH):

- Profits for traditional restaurants are estimated at between 3% and 5% of sales;

- Fast food profits could reach 8% to 15% of sales;

- A gourmet restaurant 's profit is likely to be between 2% and 4% of sales.

This is due to the cost of labor (the main expense item) and food costs (raw materials) . food cost (raw materials).

For example:

- A traditional restaurant with annual sales of €500,000 can expect a net profit of €15,000 to €25,000.

- A fast-food restaurant with similar sales could generate a net profit of €40,000 to €75,000.

How do you calculate restaurant sales?

👉 To calculate your sales, you need to know the following ratios:

-Number of days open. In France, for example, the average is 300 days a year;

-The number of services per day. Lunch, dinner, breakfast, brunch;

-Fill rate. To calculate it, divide the number of customers present by the number of places available, then multiply by 100.

Example: if your restaurant seats 50 and only 40 customers are present, your fill rate is 80%.

-Average bill. This is the average amount spent by a customer on a meal.

Are you ready? 🤓 On your calculators!

👉 There are 2 different formulas for calculating restaurant sales:

1. The first focuses on table turnover. Ideal if your restaurant has a high turnover (you welcome several waves of customers during one service).

Number of days open x Table turnover rate x Number of covers x Average bill

2. The second includes the fill rate and number of services, more suited to restaurants offering several services per day with variable capacity (if you have a terrace or several rooms, for example).

Number of days open x Number of covers x Average ticket x Fill rate X Number of services 

Let's take the example of a pizzeria in Paris.

-Number of days open: 300 days a year (closed 65 days for vacations).

-Number of seats: 50 in the restaurant.

-Average ticket: €25 (average price paid by a customer).

-Fill rate: 60% (on average, 60% of available spaces are occupied).

-Number of services per day: 2 services (lunch and dinner).

🤓 Calcul : {Chiffre d'affaires} = 300 x50 x 25 x 0,6x 2

Le chiffre d’affaires annuel estimé pour ce restaurant est de 450 000 €.

Why are average restaurant sales so high?

By changing a variable such as the average ticket or fill rate, a restaurateur can instantly estimate the impact this would have on his revenues. Sales are therefore a powerful lever for action to improve your margins !

Let's imagine that the pizzeria in the previous example increases its average bill from €25 to €30 by adding premium drinks.

🤓 Calcul : {Chiffre d'affaires} = 300 x50 x 30 x 0,6 x 2

It would then generate annual sales of €540,000.

Now imagine that the pizzeria uses a reservation service to increase its fill rate to 80% and reduce no-shows. Its sales would increase proportionally:

🤓 Calcul : {Chiffre d'affaires} = 300 x50 x 25 x 0,8 x 2

Sales could reach $600,000 in revenue.

How to increase restaurant sales?

1. Calculate your average sales

To increase your sales, you first need to understand where you stand!

Take a step back. Average your sales over the past year.

Compare yourself to other establishments: similar restaurants in the area and restaurants close to yours. Consider factors such as the location, size and type of your restaurant.

Use this information to understand your strengths, weaknesses and main obstacles, and then set new, achievable goals.

2. Implement a digital marketing strategy

It cannot be said often enough: digital digital marketing is one of the keys to increase your revenues and control your customer flow.

Get started: start by following our 16 digital communication tips! Local referencing, social media, improving your online ratings and reviews, influencer lists... We explain it all to you.

Because these strategies enable you to arrive first in search results, capture customers via Google My Business (Google Business Profile), appear everywhere on Instagram or Facebook, the quantified gains are incomparable.

Did you know? In 2024, Malou customers who worked on their restaurant's digital marketing generated an average of €4,500 more in sales per month.

Marketing is an investment. And it's not just profitable, it's exponential! Find out all the figures in our latest Malou study on the quantified gains of digital marketing for restaurateurs 👀

3. Focus on delivery 

Dark kitchens get it! Delivery is an extremely effective way of boosting a restaurant's revenue.

During the COVID-19 crisis, establishments had no choice but to switch to takeaway sales. Several years later, delivery is still used to boost restaurant sales.

It is estimated that a restaurant can increase its sales by €8,000 to €20,000 a month thanks to delivery.

4. Reorganize your menu

Launch a menu engineering strategy!

Start by analyzing your costs and sales to determine the most profitable dishes on your menu.

Then show them off as much as possible! On your menus, in photos on your Google listing, on Instagram, etc.

When it comes to profitability, think fresh, seasonal produce. They're tastier, more environmentally-friendly and also less expensive!

Once you've done this, create profitable "star" dishes for each menu change.

5. Review your pricing

Fair pricing is absolutely key to increasing your average ticket and, ultimately, your sales.

To get a good idea of your prices, start by taking a look at the competition. Check out the prices of restaurants around you, and of restaurants similar to yours.

Take location and other external factors into account, as they can affect prices! 

You can also check prices on the Internet or via delivery apps (Deliveroo, Uber Eats).

By combining an ingenious menu with an effective pricing strategy, you can maximize your sales while offering a quality culinary experience.

If a license is expensive, you should know that many restaurateurs make their margins on drinks!

6. Maximize the value of each customer

Attract more customers or raise prices? All restaurateurs are faced with these difficult choices.

The right reflex: maximize the value of every customer who walks through your door! The idea is to make the most of every transaction. 

Encourage your waiters to systematically offer extras (aperitif, starter, dessert, beverage), suggest attractive formulas or highlight special offers. 

Malou's tip: every customer represents a potential positive review! Take advantage of busy periods to launch review campaigns. It's the best way to increase your average rating on Google. 

7. Optimize your margins

It's impossible to miss out on the margins in foodservice. 

Simply put, a margin is the profit a restaurant makes on the sale of a product. 

By maximizing your marginsyou increase your revenues without necessarily increasing your sales!

To review your margins, you can : 

• Renegotiate with your raw materials suppliers ;
• Reduce waste (review your inventory, use organic waste for other recipes, use value-for-money ingredients);
• Portion control: standardize the portions served to avoid overdosing on costly ingredients, while guaranteeing customer satisfaction;
• Optimize the efficiency of your teams (redefine roles and schedules, estimate needs);
• Automate a maximum number of processes (management, reservations, accounting);
• Improve energy efficiency to reduce your electricity bills (your equipment in the short term, or your premises in the longer term).

8. Build customer loyalty 

Did you know? In the end, a new customer costs you more than a regular one.

Keep customers coming back! Reward their loyalty with programs, promotions and special offers. Keep in touch with your customer community at social media and share every new feature. 

Finally, never underestimate service! 

9. Focus on diversification

What we call "diversification" in the restaurant business consists in considering other sources of income. 

For example: 

• Create a "grocery" product line (like Petit Bao's sriracha sauce);
• Collaborate with another restaurateur on a shared star dish (so you can benefit from their visibility);
• Catering services;
• Organize events (concerts, vernissage);
• Creating an ephemeral terrace;
• Offer dedicated teleworking areas with WiFi ;
• Rent your space ...

The possibilities are endless! Be creative.

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In conclusion: organize these tips according to how quickly they can be implemented. Start with "quick wins" before embarking on long-term optimizations. Good luck 💪!

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