Average restaurant profit per month in India
Net profit is revenue minus food, staff, rent, utilities, aggregator fees, and other operating costs — not the cash in the till on Saturday. Across formats, 10–15% net margin is a realistic centre, which is why a ₹10 lakh month often yields ₹1–1.5 lakh, not ₹4 lakh.
| Format | Typical revenue / month | Typical net profit / month | Net margin |
|---|---|---|---|
| Small QSR / takeaway | ₹4–8L | ₹40k–1.2L | 8–14% |
| Café | ₹6–14L | ₹70k–2.2L | 12–18% |
| Cloud kitchen | ₹6–15L | ₹90k–3L | 15–25% |
| Casual dining (60 seats) | ₹12–25L | ₹1.2–3.5L | 10–15% |
| Fine dining | ₹25–60L | ₹2.5–10L | 10–20% |
| Dhaba / budget | ₹3–8L | ₹25k–80k | 8–12% |
A small restaurant at ₹5–10 lakh monthly revenue typically keeps ₹50,000–₹2 lakh net. Mid-size casual dining at ₹15–30 lakh often earns ₹1.5–5 lakh. Numbers assume food cost in band and rent under ~12% of revenue. Use the restaurant profit calculator with your own lines.
How much does a restaurant owner make in India?
Owner take-home is not the same as restaurant profit. Industry convention puts a modest owner salary inside labour so EBITDA is comparable across operators. If you skip that line, you overstate margin by 6–12 points on a single-outlet, owner-operated unit.
- Owner-operated QSR or café — ₹60k–₹1.5L/month after a ₹40–80k salary is counted in labour.
- Casual dining, one outlet — ₹80k–₹2.5L/month once the unit is past month 6 and prime cost is under 60%.
- Cloud kitchen, one brand — can look higher as a % because there is no FOH payroll, but aggregator ads and refunds often eat the extra.
- Absentee owner — subtract a manager (₹40–90k) from the net ranges above; many ‘profitable’ units then sit at 6–9%.
Average restaurant expenses per month
On a ₹10 lakh revenue month (a common casual / strong QSR band), the expense stack usually looks like this:
| Line | Share of revenue | Rupees on ₹10L sales |
|---|---|---|
| Food / COGS | 28–35% | ₹2.8–3.5L |
| Labour (incl. owner salary) | 22–33% | ₹2.2–3.3L |
| Rent + occupancy | 8–12% | ₹80k–1.2L |
| Utilities (power, LPG, water) | 3–6% | ₹30–60k |
| Aggregator + packaging | 5–25% | ₹50k–2.5L |
| Marketing, R&M, other | 4–8% | ₹40–80k |
Delivery-heavy months push aggregator + packaging toward the top of the band; dine-in heavy months sit at the bottom. If rent is above 12% of revenue, net margin rarely survives a slow week — see why Indian restaurants fail in year one.
Average restaurant profit margin in India (2026)
Across formats, 10–15% net margin is a realistic industry centre. Below 8% is a risk zone. Above 20% usually means unusually tight food and labour control, strong occupancy, or a low-rent model like many cloud kitchens.
| Format | Typical net margin | Food cost % | Labour cost % |
|---|---|---|---|
| Fine dining | 10–20% | 28–32% | 30–35% |
| Casual dining | 10–15% | 28–35% | 28–33% |
| QSR / fast food | 8–14% | 30–35% | 25–30% |
| Cloud kitchen | 15–25% | 28–33% | 15–20% |
| Café | 12–18% | 25–30% | 25–30% |
| Dhaba / budget | 8–12% | 32–38% | 20–28% |
The 30/30/30 rule
Consultants still teach a simple split: about 30% food, 30% labour, 30% other expenses, leaving ~10% net profit. It is a starting map, not law. High performers push net to 15–20% by holding food near 28–32% and cutting labour with better ops and QR ordering — not by hoping rent magically falls.
Prime cost: the number under the margin
Prime cost = food cost % + labour cost %. Keep it under 60% for most casual formats; the best operators sit at 55–58%. If prime cost is fine but net margin is not, rent or other overhead is the problem — not the kitchen.
Read the deep dive: Prime cost explained for Indian restaurants.
How to calculate your restaurant profit
- Net profit = Revenue − (food + staff + rent + utilities + other).
- Margin % = Net profit ÷ Revenue × 100.
- Use the same period for every line — do not mix monthly rent with daily sales without converting.
Worked example: ₹10 lakh revenue, ₹3L food, ₹2.8L staff, ₹80k rent, ₹40k utilities, ₹50k other → ₹2.5L net at 25% margin — strong versus a ~15% India average. Raise other costs or lower prices in the calculator to stress-test.
Audit dish food cost % →If your margin is weak
- Food cost above 35% — re-cost dishes; use menu pricing with live mandi rates.
- Busy but broke — check daily break-even and aggregator commissions.
- Still pre-lease — run ROI / payback before you sign.
Track weekly, not only monthly
A bad week already costs ₹30–50k before a monthly P&L arrives. Forkcast’s product P&L pulls from POS so you stop re-typing these lines. Until then, the free restaurant profit calculator is enough to know whether you are making money.