This article was written by our expert who is surveying the industry and constantly updating the business plan for a burger joint.
Starting a burger joint in October 2025, you should expect clear revenue ranges, predictable cost buckets, and margins that depend on your channel mix and rent.
Across comparable single-location burger joints, most operators report monthly sales between $20,000 and $50,000, with prime sites exceeding $80,000; profitability hinges on keeping food at ~30% of sales, labor at ~28%, and occupancy in single digits.
If you want to dig deeper and learn more, you can download our business plan for a burger joint. Also, before launching, get all the profit, revenue, and cost breakdowns you need for complete clarity with our burger joint financial forecast.
Below is a concise snapshot for a single-location burger joint in 2025: typical monthly revenue, channel mix, cost structure, and margins.
Use these numbers to size your opportunity, set guardrails for pricing and staffing, and to build a clear path to breakeven.
| Metric | Typical Range (2025) | Operator Notes |
|---|---|---|
| Average Monthly Revenue | $20,000–$50,000 (prime sites $80,000+) | Location, brand, and seating drive the spread; delivery-heavy shops skew lower margin. |
| Channel Mix | ~40% dine-in / ~25% takeout / ~20% delivery / ~10–15% catering & other | Dine-in yields highest net; delivery fees compress margins unless priced correctly. |
| Food & Packaging Cost | 28–32% of sales | Tight menu engineering and supplier deals are essential to stay near 30%. |
| Labor Cost | 25–30% of sales | Schedule to forecast, cross-train, and aim for < 28% at steady volumes. |
| Rent & Occupancy | 6–8% suburban; 8–12% dense urban | Keep all-in occupancy (base + NNN/CAM + taxes) in single digits if possible. |
| Gross Margin (pre-overhead) | 60–70% classic; 65–75% premium | Driven by menu mix (burgers, sides, beverages) and portion control. |
| Net Profit Margin | ~10–15% when well-run | Execution matters: shrink delivery fees, control waste, and protect price. |
| Breakeven Timeline | 12–24 months (median ~18 months) | Capex, ramp-up speed, and rent terms define the payback speed. |
What is the average monthly revenue for a single-location burger joint now?
Most single-location burger joints generate $20,000–$50,000 in monthly revenue, with prime sites surpassing $80,000.
High-footfall urban corners and strong brand positioning push sales to the top of the range, while smaller suburban shops often sit mid-range.
Pricing, throughput (orders/hour), and seat turnover are the levers to lift revenue without sacrificing service speed.
Plan your labor and purchasing to your realistic monthly revenue so you protect margins as you scale.
You’ll find detailed market insights in our burger joint business plan, updated every quarter.
How is revenue typically split between dine-in, takeout, delivery, and other?
A practical working mix is ~40% dine-in, ~25% takeout, ~20% delivery, and ~10–15% catering & other sales.
Dine-in produces the strongest net margins due to beverage attach and no platform fees; delivery compresses margins unless fees are offset with menu pricing and batching.
| Channel | Share of Revenue | Margin Dynamics (2025) |
|---|---|---|
| Dine-in | ~40% | Highest net (often 18–22%); upsell sides and beverages; seating turns matter. |
| Takeout (direct) | ~25% | Healthy margin; no third-party fees; speed and pickup flow drive volume. |
| Delivery (3rd-party) | ~15% | Lower net (often 8–15%) due to commissions; price for parity; optimize prep-to-door time. |
| Delivery (direct) | ~5% | Better control vs. 3P; requires ops discipline; target dense radius. |
| Catering | 5–10% | High average tickets; order-in-advance; good for weekday lunch troughs. |
| Merch/Other | 1–3% | Brand-building more than profit; helps LTV with superfans. |
| Total | 100% | Rebalance seasonally; protect dine-in experience while monetizing convenience. |
What are the main cost components and their typical shares of revenue?
Your main cost buckets are food & packaging (~28–32%), labor (~25–30%), and occupancy (6–12%), with smaller lines for utilities, marketing, and other overhead.
Target single-digit rent, keep food near 30% with portion control, and schedule labor to actual demand to hold total controllables under ~70%.
| Cost Component | % of Revenue | What to Watch |
|---|---|---|
| Food & Packaging | 28–32% | Menu engineering, waste control, negotiated buys, weekly COGS checks. |
| Labor (FOH + BOH) | 25–30% | Forecast-based scheduling, cross-training, productivity per labor hour. |
| Rent & Occupancy | 6–12% | Base + NNN/CAM + taxes; negotiate escalations and TI early. |
| Utilities | 2–4% | Gas/electric/water; maintain equipment; off-peak prep when possible. |
| Marketing | 2–4% | Track CAC and promo payback; local SEO and CRM drive repeat. |
| Insurance/Repairs/Misc. | 3–5% | Preventive maintenance; vendor SLAs; reserve for surprises. |
| Total Operating Cost | 66–77% | Leaves room for 10–15% net when executed tightly. |
What is a realistic food cost percentage for a burger joint?
A realistic food cost for burger joints averages 28–32% of sales.
Hitting the low end requires precise portions, smart substitutions (e.g., blend ratios), and pricing that covers commodity swings.
Track COGS weekly, not monthly; re-price or resize when variance persists for more than two weeks.
Lock in top SKUs with volume agreements and use engineered combos to lift gross margin.
This is one of the strategies explained in our burger joint business plan.
What labor cost percentage should a burger joint plan for?
Plan labor at 25–30% of sales, with efficient shops stabilizing near 27–28% after the initial ramp.
Use demand-based scheduling, enforce short closes/opens, and cross-train to reduce peak overtime and idle hours.
Measure sales per labor hour (SPLH) daily and fix variances immediately with shorter shifts or role consolidation.
Automate prep lists and tighten expo to serve more tickets per hour without adding heads.
We cover this exact topic in the burger joint business plan.
How much should rent and occupancy cost in urban vs. suburban locations?
Expect 8–12% of revenue in dense urban corridors and 6–8% in suburban centers for total occupancy.
Model total occupancy (base + NNN/CAM + taxes + insurance) instead of just base rent to avoid underestimating expenses.
| Location Type | All-in Occupancy % of Sales | Leasing Notes |
|---|---|---|
| Urban – Prime Corner | 10–12% | High visibility offsets higher rent; negotiate TI, free rent during build-out. |
| Urban – Secondary | 8–10% | Acceptable with strong foot traffic; push caps on CAM increases. |
| Suburban – Power Center | 7–9% | Co-tenancy matters; ensure lunch traffic; signage rights are key. |
| Suburban – Neighborhood | 6–8% | Lower rent but rely on destination demand and delivery radius. |
| Tourist/Events District | 10–12%+ | Seasonal volatility; structure percentage rent to share risk. |
| Ghost/Commissary | 5–7% | Lower occupancy but delivery fees rise; model contribution margin. |
| Rule of Thumb | Single digits | Keep occupancy in single digits whenever possible to protect net. |
What is the average gross profit margin before overhead?
Before fixed overhead, gross margin is typically 60–70% for classic menus and 65–75% for premium builds.
Margin lifts come from beverage attach, fries/sides, and well-priced combos; avoid over-discounting core burgers.
Weigh every patty and standardize toppings to prevent drift that silently erodes gross margin.
Audit voids/comps weekly and retrain to keep theoretical and actual margin aligned.
It’s a key part of what we outline in the burger joint business plan.
After all operating costs, what net profit margin should I expect?
Well-run burger joints net about 10–15% after food, labor, occupancy, and overhead.
Delivery mix, rent terms, and labor discipline are the big swing factors that push you toward the top or bottom of the range.
Protect pricing power with a clear value ladder (entry burger, signature, premium) to sustain net margin during cost spikes.
Track contribution margin by channel weekly so you scale what actually makes profit.
Get expert guidance and actionable steps inside our burger joint business plan.
What is the breakeven and payback timeline for a new burger joint?
Most operators hit breakeven between 12 and 24 months, with a median near 18 months.
Capital cost (build-out + equipment), rent concessions, and ramp-up speed determine how quickly cash flow turns positive.
| Input | Typical Range | Impact on Payback |
|---|---|---|
| Initial Capex | $120k–$350k+ | Higher capex lengthens payback; seek TI and used equipment where viable. |
| Monthly Sales Ramp | 3–6 months to stabilize | Aggressive local marketing shortens ramp by driving early repeats. |
| Gross Margin | 60–70%+ | Menu engineering and portion control accelerate cash break-even. |
| Labor % of Sales | 25–30% | Forecasted scheduling reduces burn during ramp months. |
| Occupancy % of Sales | 6–12% | Single-digit occupancy preserves cash for marketing and hiring. |
| Marketing % of Sales | 2–4% | Focus on measurable CAC and LTV; cut low-ROI promos quickly. |
| Breakeven Window | 12–24 months | Median ~18 months when the above levers are in control. |
How do seasonality and demand swings change revenue and margins?
Expect 25–40% higher sales in summer/holiday periods and 15–20% softer volume in January–February.
Plan inventory and staffing to the calendar to protect margin during troughs and avoid stockouts during peaks.
| Period | Revenue Shift | Operational Response |
|---|---|---|
| Summer (Jun–Aug) | +25–40% | Extend hours, add patios, batch prep; spotlight cold beverages and shakes. |
| Holiday Weeks | +15–30% | Promote party trays and catering; pre-sell bundles. |
| Jan–Feb | −15–20% | Lean schedules, value combos to keep traffic, focus on loyalty. |
| Back-to-School | Mixed | Target student deals; tighten dinner staffing; push app reactivation. |
| Rainy Weeks | Shift to delivery | Surge-price delivery zones carefully; protect dine-in experience. |
| Local Events | Spikes | Pre-stage staff and inventory; pop-up counters; temporary menu items. |
| Sports Finals | Takeout surge | Bundle offers; time-slot pickups; batch fries for speed and quality. |
What role do marketing and promotions play in sustaining revenue?
- Always-on local SEO, maps, and reviews management to win “near me” searches and keep CAC low.
- CRM-driven offers (SMS/email/app) that lift visit frequency and average ticket with measurable ROI.
- Limited-time offers and seasonal items to create newsworthiness without discounting core items.
- Influencer and UGC campaigns tied to specific redemption codes so you can quantify payback.
- Delivery marketplace optimization (photos, keywords, menus) to convert high-intent traffic efficiently.
Which benchmarks and KPIs should I track to stay profitable?
- COGS % weekly (target 28–32%) and variance vs. theoretical by SKU.
- Labor % and Sales per Labor Hour daily; target ≥ $55–$75 SPLH depending on market.
- Channel mix and contribution margin by channel (dine-in, takeout, delivery, catering).
- Average check, item mix (attach rates for fries, beverages, desserts), and voids/comps.
- Occupancy % of sales and cash conversion cycle (inventory days and payables terms).
What is the average gross vs. net margin picture for burger joints?
Gross margin typically lands at 60–70% (65–75% for premium menus), while net margin stabilizes near 10–15% when costs are controlled.
Beverages, sides, and combo design are your fastest tools to elevate gross, while disciplined labor and rent terms protect net.
| Margin Layer | Typical Range | How to Achieve / Protect |
|---|---|---|
| Gross (Classic) | 60–70% | Control portions, engineer menu, emphasize high-margin sides & beverages. |
| Gross (Premium) | 65–75% | Signature builds; value-based pricing; curated ingredients with portion control. |
| Operating (after controllables) | 20–30% | Keep food ~30%, labor ~28%, occupancy single digits, utilities ~3%. |
| Net (All-in) | 10–15% | Price for delivery fees, reduce waste, manage discounts and loyalty spend. |
| Peak Dine-in Net | 18–22% | Maximize seat turns and beverage attach; protect guest experience. |
| Delivery Net | 8–15% | Menu differentiation by channel; increase delivery check size. |
| Long-run Target | 12–15% | Operational cadence: weekly reviews, monthly price checks, quarterly vendor bids. |
How should I break down my revenue and cost targets each month?
Set a monthly “guardrail” model that ties revenue to clear percentage targets for food, labor, and occupancy.
Reforecast weekly using actuals and lock immediate actions (price tweaks, schedule trims, promo shifts) when drift exceeds 1–2 points.
Assign owners for each line (kitchen lead for yield, AGM for labor/scheduling, GM for pricing) and review every Monday.
Use a rolling 13-week cash view so you can fund inventory and marketing through seasonality.
This is one of the many elements we break down in the burger joint business plan.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.
Want more on burger joint economics?
Explore margins, pricing, and real-world case studies tailored to quick-service burger concepts.
Sources
- Dojo Business — Burger Profit Margin
- Dojo Business — Burger Joint Profitability
- Sauce — Average Restaurant Revenue
- 7shifts — Restaurant COGS
- 7shifts — Labor Costs Playbook
- LinkedIn — Occupancy Costs Trend
- Dojo Business — Daily Sales & Profitability
- Restolabs — Restaurant Marketing Calendar
- Lightspeed — Restaurant Profit Margins
- QSR Magazine — 2025 QSR 50
-Burger Profit Margin: A Complete Breakdown
