30 days of restaurant sales. One day of profit.
Restaurant operators continue to face challenges growing sales, while very little of the revenue they generate ultimately makes its way to the bottom line.
One way to illustrate the financial pressures facing restaurants is to look at how an average month’s revenue is spent. Imagine taking all the revenue a restaurant earns over 30 days and assigning each day to a major expense.
- The first 10 days of revenue go toward the cost of goods sold — the food, beverages and other products needed to serve guests.
- The next 10 days go toward salaries, wages and payroll taxes, reflecting the labour-intensive nature of the restaurant business.
- Another two days of revenue are needed to cover rent and leasing costs.
- The next seven days go toward all other operating costs and expenses, such as insurance and marketing.
- That leaves just one day out of the entire month as pre-tax profit.
With such a narrow margin between revenue and expenses, restaurants have had to find ways to manage rising operating costs — and few areas of the business that have been left untouched.
The 30-day breakdown helps explain why even relatively small increases in food, labour, rent and other operating expenses can have an outsized impact on restaurant profitability.
Restaurants Canada is advocating for policies that help lower the cost of doing business and create the conditions for restaurants to invest and grow. This includes pushing for tax and cost relief, a more competitive business environment, practical workforce solutions, and policies that reduce unnecessary regulatory costs.
Restaurants Canada also continues to bring operators’ experiences and data directly to governments across the country, demonstrating how rising costs are affecting restaurant profitability.
These efforts are aimed at giving operators more room to invest in their businesses, their employees and the communities they serve.
For more information and to stay ahead of the trends expected in 2027, read our newly released Foodservice Facts 2026 report here.
As the Chief Economist and Vice President of Research for Restaurants Canada, Chris Elliott manages and produces a comprehensive research program that has made Restaurants Canada a leading source of information for and about Canada’s $125-billion foodservice industry. Chris tracks and analyzes key industry and economic indicators and translates them into member reports and publications. He also provides research to support Restaurants Canada’s lobbying efforts on issues that affect foodservice operators – from payroll taxes to food costs.
Chris has worked with Restaurants Canada for over 20 years, has a Bachelor of Arts and Master’s Degree in Economics and specializes in economic modelling and forecasting.
