Skip to Content

How Much Do Burger Restaurants Make Yearly? [Profit Margin]

Burger Restaurant Business

Truth be told, how much a burger restaurant will make yearly in the United States will vary and will most often depend on a wide range of factors. However, have it in mind that burger restaurants are quite profitable businesses.

In this modern day and age, people are becoming overly conscious of their health and are looking to limit unhealthy food in their diets. Nevertheless, as long as it has to do with burgers, people love them no matter what. Burgers are considered a classic American menu item.

Younger generations of consumers who have been raised on burgers have grown to become adult consumers who will most often prefer burger restaurants over other dining options. As such, if you love burgers, then you have to consider starting and managing a burger restaurant. Burger restaurants are indeed profitable businesses and they have gained popularity among people.

Factors That Determine How Much a Burger Restaurant Makes Yearly

  1. Brand and concept

The exact amount a burger restaurant makes yearly will depend on its concept and offerings. Note there are varying types of burger businesses, including kiosks, mobile, franchises, and stand-alone shops. Don’t also forget that the sort of shop you open will decide your initial investment as well as your earnings potential.

You will also find that some burger restaurants offer various foods and take-home items. Some are primarily in-house seating, while some offer only drive-through options or even delivery services.

  1. Location

Truth be told, location is easier to analyze and very crucial, particularly since it has a massive impact on how much your burger restaurant can generate annually. When making your location decisions, ensure to consider if your location will be closer to shops and offices.

Also note that parking, access, pavements, and street lighting are all valuable when choosing the ideal location for your burger restaurant.

  1. Customer footfall

One thing to understand in this line of business is that the number of clients who come into your restaurant will factor in the amount you make yearly. As such, you have to take time to estimate footfall by quietly counting people as they walk past your location at various times of the day.

In addition, take your time to evaluate similar burger restaurants nearby, count the number of people who stop to purchase something, and try to estimate average receipts from what they buy. The results will be valid when forecasting average receipts and daily revenues for your business.

  1. Sales volume

This particular factor is very necessary as it shows the number of clients that walk through your door or perhaps drive up to your service window and buy something. Note that the more buying clients you can draw in, the more sales you can make, and this will mean more income for the business.

Aside from that, it also means that your burger restaurant profit margin will improve because you will be always busy throughout the day.

  1. Number of years in business

The number of years your burger restaurant has been in business will factor in when determining its reputation in the industry. Ideally, your burger restaurant will generate more income this year than last year, owing to factors such as efficiency, brand awareness, less waste, and more loyal customers.

  1. Operational costs

Note that this will vary depending on the sort of products offered as well as the ingredients that go into the burgers. One primary expense that will impact your business income will be rent, and you should try to ensure that it doesn’t go past 15 percent of sales.

Employee-related expenses, including payroll taxes, benefits, and payroll accounting services, will also have a say in your business income. Don’t forget that other costs like professional fees, utilities, licenses, advertising, and maintaining the location and equipment will also have to be considered.

Profit Margin a Burger Restaurant

According to industry reports, a profit margin of 10% to 15% is ideal for a restaurant business. It simply entails that if a burger concept generates $500,000 in annual revenue, it should have a profit of between $50,000 and $75,000.

Nonetheless, it’s pertinent to reiterate that profit margins can vary massively depending on the sort of restaurant and the industry as a whole. Within an intensively competitive market, profit margins might be lower owing to the need to offer lower prices to draw in more customers.