I’ve seen how small shifts in the industry can have a big impact on revenue. And here’s some good news—restaurant earnings are on the rise.
On average, restaurants now generate $486,000 in annual revenue, marking a 19% increase since 2021. But what does that really mean for your business?
Understanding the factors that drive restaurant revenue is crucial for maximizing profits and staying competitive. Let’s break down the numbers and see how your restaurant stacks up.
How Much Do Restaurants Make: Key Takeaways
- Average Restaurant Revenue: $486,000 per year, $40,500 per month, $1,350 per day
- Restaurant Profit Margin: The average profit margin for most restaurants is 2% to 6%, but models like food trucks, pizzerias, and bars can achieve margins of up to 25%.
- High-Earning Locations: Cities like Honolulu ($1,260 per capita) and Los Angeles ($1,185 per capita) have the highest dining expenditures in the USA.
- Most Profitable Restaurant Types: Bars, fast food (QSRs), fine dining, ghost kitchens, and pizzerias.
- How Much Do Restaurant Owners Make: Earnings range between $30,000 to $155,000 annualy, with an average of $70,592 per year, depending on factors like location, restaurant type, and management.
- Additional Revenue Streams: Ghost kitchens (delivery-only models) have gained popularity and offer profit margins of 15% to 25%, which is higher than the traditional restaurant models.
- How to Increase Restaurant Revenue: Strategies include optimizing menu pricing, expanding online ordering, offering loyalty programs, upselling, improving customer experience, reducing food waste, and leveraging marketing.
How Restaurant Revenue is Calculated
Restaurants generate income from multiple sources beyond just food sales.
Additional revenue streams like beverage sales, catering services, and private events help maximize profitability.
- Food Sales: Income from dine-in, takeout, and delivery orders.
- Beverage Sales: Revenue from alcoholic and non-alcoholic drinks.
- Online Orders: Sales from a restaurant’s website, apps, or third-party platforms.
- Catering Services: Earnings from catering events and bulk orders.
- Private Events: Revenue from hosting private dining, parties, or corporate events.
- Loyalty Programs & Memberships: Income from subscription-based dining programs or exclusive offers.
- Merchandise Sales: Revenue from branded products, such as sauces, apparel, or cookbooks.
- Franchise Fees & Licensing: Earnings from franchising restaurant concepts.
- Service Fees & Surcharges: Extra charges for gratuities, delivery fees, or premium services.
- Third-Party Partnerships: Commissions from collaborations with delivery platforms or local vendors.
- Alcohol & Bar Sales: High-margin revenue from beer, wine, and cocktails.
What is restaurant revenue?
Restaurant revenue is the total income a restaurant generates from all sales before deducting expenses.
This includes earnings from food and beverage sales, online orders, catering, merchandise, and any additional services like event hosting.
It’s a key metric that reflects a restaurant’s financial health and overall performance.
How to calculate restaurant revenue?
Accurately calculating revenue is essential for any restaurant owner to track financial performance and profitability.
Total Revenue = Number of Sales × Average Order Value
Example calculation:
Let’s say a restaurant generates revenue from multiple sources in a month:
- Dine-in Sales: 2,500 meals at $22 average order value → $55,000
- Online Orders: 1,000 orders at $28 → $28,000
- Catering Services: 6 events at $2,500 → $15,000
- Beverage Sales: 2,000 drinks at $9 → $18,000
Total Monthly Revenue = 55,000 + 28,000 + 15,000 + 18,000 = $116,000
This means the restaurant’s annual revenue would be $1,392,000 if sales remain consistent.
What restaurant software helps calculate revenue?
Whether managing a fast food restaurant, a fine dining establishment, or a quick service restaurant, the right software can help streamline operations, monitor profit margins, and improve restaurant cash flow management.
I highly recommend these tools to calculate and analyze your restaurant’s revenue effectively:
POS System
A POS system is essential for tracking restaurant sales, calculating average revenue, and analyzing financial performance.
It records every transaction, providing real-time data on gross profit, net profit margin, and overall restaurant profit margin. POS systems also generate reports that help restaurants determine how much revenue they’re making per day, week, or month.
How It helps:
- Monitors average restaurant revenue in real time.
- Tracks revenue per menu item, location, or service type.
- Helps optimize menu pricing to maintain higher profit margins.
Online Ordering System
An online ordering system tracks digital transactions for restaurants that offer delivery or takeout, allowing restaurant owners to measure more revenue generated from these channels.
This software also provides insights into customer volume, peak order times, and average order value, helping restaurants refine pricing and promotions.
How it helps:
- Tracks restaurant revenue from digital orders.
- Analyzes average order value and spending trends.
- Helps businesses adjust pricing to boost revenue.
Inventory Management Software
Controlling food costs is crucial for maintaining a profitable restaurant.
Inventory management software helps restaurants calculate total revenue by reducing waste, monitoring ingredient usage, and preventing overstocking.
Keeping food expenses in check can increase revenue and improve average restaurant profit margin.
How it helps:
- Tracks food costs in real time.
- Reduces food waste, lowering operating costs.
- Helps maintain higher profit margins through optimized stock control.
Accounting Software
Accounting software simplifies financial management by automatically tracking total revenue, gross revenue, and net income. It integrates with POS systems and payroll, ensuring restaurant owners have a clear view of their financial health.
How it helps:
- Automates expense tracking, including labor costs and rent costs.
- Provides profit and loss reports to monitor annual revenue and yearly revenue.
- Helps calculate total expenses to improve financial planning.
Restaurant Analytics Tools
Data-driven decision-making is key to success in the restaurant industry.
Analytics tools track restaurant sales, peak hours, customer volume, and menu performance. These insights help businesses adjust menu offerings, predict demand, and maximize sales.
How it helps:
- Analyzes how much revenue is generated at different times.
- Tracks gross profit and identifies best-selling menu items.
- Helps adjust menu pricing and offerings for higher revenue.
Employee Management Software
Labor is one of the most significant operating expenses in the restaurant business. Employee management software helps you control restaurant labor costs by optimizing staff scheduling and tracking payroll.
How it helps:
- Reduces operational costs by preventing overstaffing.
- Tracks employee hours and wages to improve restaurant profit margin.
- Ensures compliance with labor regulations, avoiding unnecessary expenses.
You can easily manage revenue and improve restaurant operations using these systems.
Whether you run a full service restaurant, a fine dining restaurant, or a casual dining establishment, the right technology is necessary for maintaining a successful restaurant in a competitive industry.
What is the Average Revenue for a New Restaurant Under a Year Old?
Based on recent data, new restaurants less than 12 months old report an average monthly revenue of approximately $111,860.70. This figure translates to an annual revenue of about $1,342,328.40.
However, it’s important to note that these averages can vary widely depending on several factors, including the restaurant’s location, size, concept, and market conditions. For instance, a fast food establishment in a high-traffic area may generate more revenue than a fine dining restaurant in a less populated region.
Additionally, new restaurants often face challenges such as establishing a customer base, refining operations, and managing startup costs, which can impact their revenue during the first year.
- 2019–2021: Revenue remained stable as these years reflect pre-pandemic and early pandemic conditions. While the average revenue for new restaurants stayed consistent, the industry faced challenges like lockdowns and reduced foot traffic in 2020 and 2021.
- 2022–2023: Inflation peaked in 2022 (around 10%), leading to increased menu prices and operational costs. This might have slightly pressured new restaurant revenues despite the stable average figure cited.
- 2024–2025: Inflation eased (down to 2.4% in 2025), and consumer spending on dining out showed resilience. Industry-wide sales grew by ~4% in 2025, but competition intensified, and many operators still grappled with high costs.
Understanding these variables is crucial for new restaurant owners as they navigate the initial stages of their business and strive for profitability.
Which Types of Restaurants Have the Highest Revenue on Average?
The average restaurant revenue varies significantly based on the type of establishment, its pricing model, and customer volume.
Some restaurant types thrive on high customer turnover, while others focus on premium menu offerings with larger check sizes. Understanding how different restaurant types generate revenue can help you optimize your business strategies.
The table below highlights key revenue factors for various restaurant types. These factors influence overall restaurant revenue and determine which business models yield the highest earnings.
| Restaurant Type | Daily Revenue Potential | Customer Volume | Average Check Size | Operating Cost Impact | Primary Revenue Drivers |
|---|---|---|---|---|---|
| Fast Food | High ($5,000 – $10,000) | High | Low ($8 – $12) | Low | High turnover, low-margin menu items |
| Casual Dining | Medium ($2,000 – $6,000) | Medium-High | Medium ($15 – $30) | Medium | Balanced check size, mix of food and beverage sales |
| Fine Dining | High ($5,000 – $20,000) | Low-Medium | High ($50 – $150) | High | High-margin wine & premium food sales |
| Buffet | Medium ($1,500 – $4,000) | High | Medium ($20 – $40) | Medium | Volume-based sales, upselling beverages |
| Cafeteria | Low-Medium ($500 – $3,000) | High | Low ($8 – $15) | Low-Medium | Quick service, cost-efficient bulk food production |
| Coffee Shop | Medium ($1,000 – $3,000) | Medium-High | Low-Medium ($5 – $12) | Medium | Morning peak sales, high-margin beverage sales |
| Bakery | Low-Medium ($500 – $2,500) | Medium | Low ($5 – $12) | Low-Medium | Retail packaged goods, breakfast-focused revenue |
| Bar/Pub | Medium-High ($2,000 – $8,000) | Medium | Medium ($15 – $40) | Medium-High | High-margin alcohol sales, weekend peaks |
(Sources: UpMenu, National Restaurant Association, Food Business News)
How to Increase Restaurant Revenue
In my experience working with restaurant owners, I’ve seen firsthand what strategies drive higher revenue and help create a successful restaurant.
Let’s dive into the most effective ways to increase restaurant revenue and improve long-term profitability.
1. Optimize Menu Pricing
Restaurant owners can use menu engineering to strategically adjust menu pricing to highlight higher-profit-margin items and maximize revenue.
Start by analyzing restaurant sales data to identify the most popular and profitable dishes.
Then, adjust prices based on demand, ensuring high-margin items are placed prominently on the menu while low-margin or slow-selling items are reworked or removed.
2. Expand Online Ordering
Integrate a direct online ordering system to generate more revenue by reaching a larger audience while reducing reliance on third-party delivery services that charge high fees.
“UpMenu has transformed our business operations and growth trajectory. The streamlined online ordering platform has substantially increased our sales while reducing our reliance on costly third-party platforms. Our customers appreciate the seamless ordering experience, and we value the operational efficiency and control it has brought to our multi-location management.“
Chad White, Owner of Dedicate Healthy Kitchen chain
A well-optimized system integrates with your whole restaurant business, enabling customers to place orders directly through your website or app.
3. Offer Loyalty Programs
Implementing a restaurant loyalty program is a proven way to drive repeat business and increase revenue.
Start by choosing a structure that fits your restaurant business—a points-based system where customers earn rewards for every dollar spent, a tiered program with exclusive perks for frequent diners, or a subscription model offering discounts and priority access.
Fast food restaurants can offer free items after a set number of purchases, while fine dining restaurants might provide VIP experiences or early reservations.
Not sure where to start? Explore some of the best restaurant loyalty programs for real examples of what works.
4. Upsell & Cross-Sell
Train staff to suggest high-margin add-ons like appetizers, premium drink pairings, or desserts.
Encourage cross-selling by bundling popular menu offerings, such as a combo meal in fast food restaurants or a prix-fixe menu in fine dining restaurants. Highlighting upgrades, like extra toppings or premium ingredients, also increases the average order value.
UpMenu’s online ordering system makes upselling and cross-selling seamless by automatically suggesting add-ons at checkout.
5. Improve Customer Experience
Delivering an exceptional dining experience is key to increasing restaurant revenue and building a loyal customer base.
Focus on faster service, a welcoming ambiance, and personalized interactions to keep guests coming back. You can streamline ordering with digital kiosks or enhance guest satisfaction through staff training and tailored recommendations.
Integrating technology, such as a restaurant feedback system, ensures a seamless experience that encourages more customers to return, ultimately leading to higher revenue.
6. Reduce Food Waste
Implement inventory management software to track ingredient usage, reduce overordering, and prevent spoilage. Standardizing portion sizes in fast food restaurants, casual dining establishments, and fine dining restaurants ensures consistency while minimizing waste.
Additionally, repurposing surplus ingredients into daily specials or donating excess food can further cut operating costs while promoting restaurant sustainability.
7. Leverage Marketing & Promotions
Effective restaurant promotions can drive more revenue by attracting new guests and encouraging repeat visits.
Use a mix of digital marketing, in-house specials, and limited-time deals to keep customers engaged.
Fast food and quick service restaurants can benefit from bundle deals and free delivery promotions, while fine dining restaurants can attract high-spending guests with exclusive seasonal promotions or tasting events.
Increasing restaurant revenue isn’t about one big change—it’s about consistently optimizing key areas.
Focusing on these proven strategies will help you attract more customers, improve profit margins, and build a successful restaurant.
Frequently Asked Questions (FAQ)
How much do restaurants make in a day?
On average, restaurants make $1,350 per day, based on an annual revenue of $486,000. However, daily earnings vary widely depending on restaurant type, location, and customer volume.
New restaurants typically generate around $3,728 per day, while smaller establishments may make less.
How much do restaurants make in a month?
The average restaurant revenue per month is $40,500, calculated from an annual revenue of $486,000. Restaurants in high-traffic locations or with strong restaurant sales from delivery and online orders may earn significantly more.
How much do restaurants make in a year?
The average revenue for a restaurant in the U.S. is approximately $486,000 per year, though this figure varies based on factors like restaurant size, location, and service type.
