Updated October 2026 · Fraser Bond
Commercial · Restaurants
What it costs to run a restaurant
Stafflargest cost
Food28–35%
Rent& rates
Profitcalculator
In short: For most UK restaurants, staff costs are the biggest expense, often around 30 to 35% of sales, followed by food and drink at roughly 28 to 35%. Rent, business rates, utilities, insurance, card fees and repairs take much of the rest, leaving many restaurants with a net margin in single figures. In 2026, the National Living Wage is £12.71 an hour for those 21 and over, and employer National Insurance is 15% above a lower threshold. The right premises, with a fair rent and an existing extraction system, can make the difference. Fraser Bond helps restaurateurs find and negotiate commercial premises across London.
| Cost | Typical share of sales |
|---|---|
| Staff | 30–35% |
| Food and drink | 28–35% |
| Rent and rates | 8–15% |
| Utilities | 4–8% |
| Other (card fees, repairs, marketing) | 5–10% |
Rough cost breakdown
Monthly profit calculator
Gross profit after food–
Net profit before tax–
Net margin–
Rent is often expected to be under about 10% of sales. Use your own figures.
Premises checks
Frequently asked questions
Keep exploring
COMMERCIAL GUIDE
How to Find the Right Office to Rent in LondonCOMMERCIAL GUIDE
How Much Does It Cost to Rent Office Space?COMMERCIAL GUIDE
Buying Commercial Property in the UK: A Practical Guide
How to Find the Right Office to Rent in LondonCOMMERCIAL GUIDE
How Much Does It Cost to Rent Office Space?COMMERCIAL GUIDE
Buying Commercial Property in the UK: A Practical Guide
Browse every guide in London Commercial Property Hub → · London area guides →
Handy tools
Stamp duty calculatorRental yield calculatorMove-in costsBTL deposit calculatorRefurb cost per m²
Find commercial space
Tell us your requirements and we'll shortlist options.
Get startedTell us your requirements and we'll shortlist options.
What is a good restaurant profit margin?
Often 3 to 10% net.
Can Fraser Bond find restaurant premises?
Yes, across London.
Looking for restaurant premises?
Talk to our team or get a free valuation.
Speak to our teamGet a free valuation
