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Guides

How to tell if your restaurant is actually profitable

A full dining room doesn’t mean you’re making money. Profit is what’s left after every cost, not just sales.

Net profit = Sales minus all costs (COGS, labor, rent, utilities, and everything else)

The numbers that tell the story

  • Prime cost %: COGS plus labor as a share of sales. Your biggest lever.
  • Net margin: net profit divided by sales. For independent restaurants this is often thin, just a few percent.
  • Trend: one good month isn’t a pattern. Watch the direction over several months.

Hidden costs that quietly eat profit

  • Delivery app fees.
  • Payroll taxes and benefits on top of wages.
  • Waste and comps.
  • Software subscriptions.

The habit that matters

Check your real numbers regularly, not just the sales at the end of the night. Seeing profit, not revenue, is what keeps a restaurant alive.

Casacabe puts your sales, expenses, labor, and profit in one place, so you can see at a glance whether the month actually paid off.