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A comment on The economics of all-you-can-eat buffets. Parent comment

Re:The economics of all-you-can-eat buffets by ska on Sunday January 26, 2020 @06:43PM (#22155694)
Restaurants, outside of fast food and other large chain operation, probably average below this for various reasons (churn being a big one). I've heard that 5% is a good target.

In fact I suspect you can reasonably look at large chain operations as figuring out a way to reduce the factors that keep the average return lower than it "ought" to be...

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Re:The economics of all-you-can-eat buffets by Mikeb85 on Monday January 27, 2020 @03:36PM (#22163508)
Nah 5% is shit (but also the average). I've been lucky to have been involved in some very profitable restaurants with margins more like 20%...

When you set out to do a business plan, you should be looking at differentiation. Not producing a commodity with slim margins...

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Re:The economics of all-you-can-eat buffets by ska on Monday January 27, 2020 @07:45PM (#22165381) 

  Nah 5% is shit (but also the average)
It can't really be both of those things. I'm sure there are outliers just like you describe, but not that many.

20% is pretty high margin in general for business.

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