How much does a restaurant earn? How to read margin and the income statement
Operating margin = net revenue − raw materials − labor − rent − other costs. In the example used in these guides: €72,000 on €600,000, or 12%, about €6,000 a month.
In brief
- Real earnings are measured after paying for the owner's work as well.
- Margin and cash are different things: the principal portion of loan payments leaves the cash balance.
- The useful figure is the one for the last 12 months.
A restaurant's income statement (P&L)
| ACRA calculation (example) | Euro/year | % |
|---|---|---|
| Revenue excluding VAT (IVA) | 600,000 | 100% |
| Raw materials | −180,000 | 30% |
| Labor | −192,000 | 32% |
| Rent | −60,000 | 10% |
| Other costs | −96,000 | 16% |
| Operating margin | 72,000 | 12% |
| Depreciation (€210,000 over 7 years) | −30,000 | 5% |
| Interest (€120,000 at 5%) | −6,000 | 1% |
| Pre-tax result | 36,000 | 6% |
Example values, not market averages.
Margin and cash
The loan payment in the example is about €20,700 a year, of which €14,700 is principal. The cash balance for the year falls to about €51,300 before taxes.
Is the owner paid?
If the owner's work is worth €45,000 a year, the margin falls from €72,000 to €27,000: from 12% to 4.5%.
The most frequent mistakes
- Revenue including VAT: €660,000 collected is €600,000 of revenue (10% VAT).
- Purchases used in place of consumption, without the inventory change.
- Venue costs paid personally by the owner.
- Forgotten depreciation.
Industry data
In 2025, restaurant spending in Italy was €100 billion and menu prices rose 3.2%. At constant prices, spending is still 5.4% below 2019 (FIPE data, from Italy's restaurant trade association). More revenue per customer, fewer customers.
Frequently asked questions
How much does a restaurant earn each month?
Monthly revenue excluding VAT minus raw materials, labor, rent and other costs. In the example: €6,000 a month on €600,000 of annual revenue.
What is the difference between revenue and profit?
Revenue is what comes in; profit is what is left after all costs. In the example: €600,000 against €36,000 before taxes.
How much does a takeout pizzeria earn?
Same structure, with two extra items: boxes and delivery platform commissions, calculated on the price.
Sources
- Openings and closures of restaurant businesses in 2025, FIPE data: Teleborsa-ANSA, September 22, 2026 (in Italian).
- Businesses, spending, prices and employment in the restaurant industry, 2025: FIPE-Confcommercio, Rapporto Ristorazione 2026, summary of April 9, 2026 (in Italian).
- The calculation examples are elaborations by AC Retail Advisory on hypothetical values, consistent with the example income statement in the food cost guide.
Updated October 9, 2026.
Author
Andrea Calistri, founder of AC Retail Advisory. I have 20 years of experience in food retail and the food industry and have opened more than 200 locations. I have run operations for restaurant networks, served as CEO in Italy, France and the Netherlands, and advised restaurant chains and food companies as a consultant.
Restaurant check-up
Where the restaurant loses margin, in euros.
For a complete read of the restaurant's numbers: restaurant check-up.
