Benchmark Costs for a Takeaway Restaurant: What You Should Expect
Benchmark Costs for a Takeaway Restaurant: What You Should Expect
Running a takeaway restaurant can be one of the most rewarding and demanding types of small businesses. Whether you’re starting fresh or evaluating an existing operation, understanding the benchmark costs is essential for staying profitable and competitive.
Below we outline the typical cost breakdowns for a small to medium takeaway in Australia, based on industry norms and real-world averages.
1. Cost of Goods Sold (COGS): 30–35% of Revenue
Your biggest variable expense is food and packaging. For a healthy profit margin, aim to keep COGS between 30% and 35% of total revenue.
- Example: If your weekly sales are $10,000, your food costs should be around $3,000–$3,500.
- To stay on target: monitor portion sizes, negotiate supplier terms, and regularly review menu pricing.
2. Wages and Labour: 25–30% of Revenue
Labour is your second-largest cost. This includes kitchen staff, front-of-house attendants, and delivery support if applicable.
- A typical takeaway spends 25%–30% on wages including superannuation and payroll tax.
- Using rostering software and cross-training staff can help reduce overtime and improve efficiency.
3. Rent and Outgoings: 8–12% of Revenue
Location drives foot traffic — but it comes at a price.
- Rent in high-footfall areas like shopping centres or urban strips can exceed $1,000–$2,000 per square metre per year.
- Aim to keep total occupancy costs (including rates, water, and strata) under 12% of revenue to maintain profitability.
4. Utilities and Services: 2–4%
Electricity, gas, and water usage is high for kitchens operating fryers, ovens, and refrigeration.
- Energy efficiency can make a noticeable difference. Switching to LED lighting and maintaining appliances can save up to 10% annually.
5. Marketing and Advertising: 1–3%
Takeaways thrive on repeat customers and local visibility.
- Budget around 1–3% of turnover for digital ads, delivery app commissions, and loyalty programs.
- Listing on major delivery platforms may increase exposure but can cost 25–35% per order, so factor this into your pricing.
6. Insurance, Licences, and Compliance: 1–2%
You’ll need public liability, workers’ compensation, product insurance, along with food-handling and council licences.
- Together, these usually represent 1–2% of annual revenue.
7. Repairs, Maintenance, and Miscellaneous: 2–4%
Ovens, fryers, and extraction systems require ongoing upkeep.
- Budget 2–4% for cleaning, repairs, uniforms, and general supplies.
8. Profit Margin: 10–15% (Net)
A well-run takeaway typically earns net profits of 10–15%, depending on size, location, and efficiency.
- Small owner-operated takeaways can perform even better, particularly if the owner works in the business and keeps wage costs down.
Example Benchmark Breakdown (Based on $500,000 Annual Revenue)
Final Thoughts
Takeaway restaurants operate on tight margins but high turnover. The key to profitability is constant monitoring of food costs, labour efficiency, and menu pricing.
Benchmarking your performance against industry standards can help you identify issues early and make informed decisions about staffing, pricing, or even expansion.
If you’re looking to sell or value your takeaway, these figures also form the foundation of a professional appraisal, helping buyers and sellers alike understand true earning potential.
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