restaurant profitability

Restaurant profitability refers to how much profit a restaurant earns after covering all expenses such as food costs, staff wages, rent, utilities, and other operating costs. It is the difference between total revenue (money earned from sales) and total expenses. A profitable restaurant efficiently manages these costs while maintaining appealing food and service quality, ensuring revenue exceeds expenses. High profitability indicates a financially healthy establishment, whereas low or negative profitability suggests the need to control costs or boost sales to sustain operations.