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Restaurant Operating Benchmarks
These are the ranges we use inside every RBL article. They are meant for operators running 1 to 50 units, not equity analysts. Ranges reflect fully-loaded costs (COGS at delivered price; labor including payroll taxes and benefits). All figures are expressed as % of net sales unless otherwise noted.
Concepts referenced below:
- QSR (quick service, drive-thru dominant)
- Fast Casual (limited service, higher AUV, higher ticket)
- FSR (casual) (full service, casual dining)
- Fine Dining
If your P&L number falls inside the healthy range, keep doing what you are doing and go read something else. If it falls in the red-flag range, the article that quotes this table should point you to the fix.
Prime cost (COGS + labor, fully loaded)
| Concept | Healthy range | Red flag |
|---|---|---|
| QSR | 55%-60% | above 62% |
| Fast Casual | 55%-60% | above 62% |
| FSR (casual) | 60%-65% | above 65% |
| Fine Dining | 62%-68% | above 70% |
Food cost % (COGS ÷ net food sales)
| Concept | Healthy range | Notes |
|---|---|---|
| QSR | 28%-32% | Higher for premium ingredient brands |
| Fast Casual | 28%-34% | Wide band based on protein mix |
| FSR (casual) | 28%-32% | |
| Fine Dining | 30%-35% | Higher-end ingredients pull COGS up |
Labor % (fully loaded: wages + payroll taxes + benefits)
| Concept | Healthy range | Red flag |
|---|---|---|
| QSR | 25%-30% | above 32% |
| Fast Casual | 25%-30% | above 32% |
| FSR (casual) | 28%-32% | above 35% |
| Fine Dining | 30%-34% | above 36% |
4-wall EBITDA % (store-level EBITDA before corporate G&A)
| Concept | Healthy range | Under-performing |
|---|---|---|
| QSR | 18%-22% | under 12% |
| Fast Casual | 15%-20% | under 10% |
| FSR (casual) | 12%-18% | under 8% |
| Fine Dining | 10%-15% | under 6% |
4-wall EBITDA, canonical definition
4-wall EBITDA = store-level EBITDA before corporate G&A and above-store allocations. It’s what the four walls generate on their own.
That means: revenue at the store, minus COGS, minus store labor (fully loaded), minus store-controllable operating expenses, minus store occupancy (rent, CAM, property tax, insurance if paid by the store), before any allocated corporate G&A, marketing fund contributions above what the store spends, depreciation, interest, and income tax. It is the number a private-equity buyer will underwrite off, and the number a bank will use when sizing a store-level loan.
If your P&L rolls corporate G&A into the store line, back it out before comparing to this table. Do not compare a burdened store P&L to a 4-wall benchmark.
Sources
National Restaurant Association, 2026 State of the Restaurant Industry Report (Feb 2026 release). Sources available on the site landing page.
Restaurant365, 2026 Industry Survey. Prime cost 60%-66% for the operator median.
Toast, Voice of the Restaurant Industry. Labor-cost 30%-35% of revenue typical.
JPMorgan Chase Institute, Cash is King. Median restaurant: 16 cash buffer days.
Internal RBL analysis across 200+ operator engagements (2011-2026).