Research
October 16, 2025

Higher volume restaurants reported lower food-cost ratios in 2024

Lower costs flowed through to the bottom line in the form of higher profitability.

Running a restaurant with higher sales doesn’t necessarily mean it’s more profitable. However, the additional customer volume can often lead to some economies of scale – particularly in the areas of food and beverages. 

That was the case for many fullservice restaurants in 2024, based on data from the National Restaurant Association’s new Restaurant Operations Data Abstract. The Abstract is based on financial and operating data provided by more than 900 restaurant operators nationwide. 

Among fullservice operators with annual sales of $2 million or more, food and non-alcohol beverage costs represented a median of 31.0% of sales in 2024. For fullservice respondents with sales below $2 million, food and non-alcohol beverage costs were a median of 33.7% of sales – or nearly 3 percentage points higher.


Not surprisingly, those variations in food-cost ratios were also reflected in the bottom line. 

Among fullservice operators with annual sales of $2 million or more, income before taxes represented a median of 4.3% of sales in 2024. For fullservice operators with sales below $2 million, income before taxes was a median of 1.1% of sales – or more than 3 percentage points lower.


In addition to food costs, the Abstract contains data for several other cost categories, such as labor, occupancy, utilities, marketing and more. Additionally, the data is presented by various attributes, including average check size, annual sales volume, size of community and restaurant location.  

This information can help restaurant operators sharpen financial performance and identify cost categories where data could substantially vary by type of operation. By analyzing operating costs, restaurant operators may detect potential problems, determine how to manage costs, and become more efficient. 

The 2025 edition of the Restaurant Operations Data Abstract is available for purchase on the Association’s store.

Note: The data in the 2025 Restaurant Operations Data Abstract is not intended to represent standards or goals for individual restaurants, nor is the report an attempt by the National Restaurant Association to set or adjust industry prices or operating ratios. Rather, the data and related ‘Analyze Your Operation’ worksheet are intended to be used as management tools to help restaurant operators gauge their restaurant’s performance.