Steakhouse: average revenue, profit and margins

This article was written by our expert who is surveying the industry and constantly updating the business plan for a steakhouse.

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The Dojo Business Team

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What revenue range is typical for steakhouses of different sizes and locations?

Steakhouse revenue ranges from small rural units at ~$120k–$400k to high-end city venues at $1.2M–$3.0M+ per year.

Smaller rural dining rooms have limited seats and weaker alcohol mix, while mid-range urban rooms often reach $0.6M–$1.0M with stronger traffic and private dining. Flagship city locations that pair premium beef with wine programs and corporate spending can scale well beyond $1.2M.

Capacity (seats), average check (menu price + beverage), and table turns primarily determine the ceiling; private dining and events add step-changes on peak nights. Tourist zones and financial districts typically deliver higher occupancy and richer checks, which lift both revenue per seat and per square foot.

When you model your steakhouse, build scenarios with conservative, base, and stretch assumptions for seats, turns, and average check to understand your range. It’s a key part of what we outline in the steakhouse business plan.

Lock your rent before projecting aggressive revenue so your break-even stays realistic.

What is the average profit margin in the U.S. and in other major markets?

Most U.S. steakhouses net 3–5% after all expenses and taxes; top operators hit 8–12%.

EBITDA margins in select emerging markets (e.g., Mexico, Saudi Arabia, Philippines) can run higher—sometimes mid-teens—where rent, labor, and tax burdens are lighter. However, import costs for prime beef can offset some of that advantage.

Margins expand materially with a strong beverage program, tight portion control, and rent below 10% of sales. Margins compress with volatile beef prices, discounting, and overstaffing during weekdays.

Benchmark quarterly and adjust labor deployment and menu prices quickly when cost swings emerge. You’ll find detailed market insights in our steakhouse business plan, updated every quarter.

Protect floor margin with automatic price escalators on high-cost cuts.

What is the usual revenue split between food, beverage, and other sources?

Most steakhouses see Food 65–75%, Beverage 20–30%, Other ≤5%.

Higher-end concepts with curated wine lists and classic cocktails skew toward the top of the beverage range, while casual steakhouses remain food-heavy. Private dining fees and events rarely exceed 5% unless you run several rooms with dedicated sales.

Track mix weekly because beverage margin is your cushion against beef inflation and slow Mondays. Consider prix-fixe + pairing menus to lift beverage attachment without discounting steaks.

This is one of the strategies explained in our steakhouse business plan.

Design your menu layout to naturally upsell sides and wine by the glass.

What are standard steakhouse food cost percentages versus industry benchmarks?

Steakhouse food cost typically runs 30–35% of sales, above the 28–32% full-service norm.

Premium beef, variable yield loss (trim, aging), and menu variety push costs higher than other cuisines. Portion control, cut engineering (e.g., bavette, picanha), and strategic sides help bring food cost back toward the low-30s.

Engineer the menu to feature profitable non-steak items (raw bar, sides, desserts) that average 20–25% cost to offset ribeye and filet. Renegotiate specs quarterly and lock pricing with suppliers where possible.

We cover this exact topic in the steakhouse business plan.

Run a weekly theoretical vs. actual food-cost reconciliation to catch variances early.

What are average labor costs as a percentage of revenue?

Typical steakhouse labor runs 25–30% of sales for total payroll.

Upscale service models with captains and sommeliers sit toward 30%, while streamlined concepts with bar-forward dining can land closer to 25%. Smart scheduling by daypart and weather cuts idle hours without hurting service.

Use labor standards per cover and per revenue dollar, and flex staffing to pre-booked reservations and private events. Cross-train line cooks and servers to reduce peak bottlenecks.

Get expert guidance and actionable steps inside our steakhouse business plan.

Automate prep lists with historical sales to shrink overtime.

What are typical overhead expenses (rent, utilities, marketing) as a % of sales?

Overhead usually totals 15–25% of sales for a steakhouse.

Rent should remain around 6–10% of sales for sustainability; utilities generally 3–5% given refrigeration and broilers; marketing 1.5–3% for steady demand building. Insurance, licenses, linen, and tech stack make up the remainder.

High-rent flagship streets can work only with very strong beverage mix and private dining utilization. Negotiate TI (tenant improvement) and rent-free periods to protect early-stage cash.

This is one of the many elements we break down in the steakhouse business plan.

Structure percentage-rent clauses carefully to avoid margin cliffs in peak season.

What is the average net profit margin after all expenses and taxes?

Net profit for most steakhouses lands at 3–5%, with 8–12% achievable for best-in-class units.

Operators who lock beef pricing, elevate beverage, and keep rent under 10% are the ones who reliably break into double-digit net. Poor labor discipline and deep discounting typically pull net below 3%.

Build your P&L with a conservative base case and require new menu items to improve total plate contribution. Reprice quarterly if beef and labor trend above plan.

It’s a key part of what we outline in the steakhouse business plan.

Protect cash with weekly flash reports and a rolling 13-week forecast.

What are solid revenue-per-seat and revenue-per-square-foot benchmarks?

Target $5,000–$15,000 revenue per seat per year and $200–$400 per square foot per year.

Higher-end rooms with strong wine programs and private dining reach the upper end of both metrics. Concepts with fewer turns or weak weekday demand sit near the lower end.

Raise revenue per seat by improving beverage attachment, turning small tables efficiently, and adding prix-fixe experiences mid-week. Boost per-square-foot output by activating lunch in office districts and selling private events on dark nights.

Track both KPIs monthly and tie incentives to improvements in mix and turns.

Use these metrics to compare sites before you sign a lease.

What is the average check, and how many customers are served per day or week?

Expect $40–$50 average check for mid-tier steakhouses and $100+ for luxury concepts.

Daily traffic varies widely: 50–200 covers per day is common depending on size, day of week, and private dining. Strong beverage programs add $12–$25 per guest on wine and cocktails without slowing turns.

Model seat count × turns × average check to size daily and weekly sales; then stress-test slow Mondays and shoulder seasons. Use OpenTable and local calendars to pre-fill soft nights.

You’ll find detailed market insights in our steakhouse business plan, updated every quarter.

Guard speed of service so check growth does not reduce table turns.

What seasonal or weekly sales patterns do steakhouses experience?

• Weekends (Fri–Sat) and celebratory dates (Valentine’s, graduations, holidays) deliver peak covers and highest average checks.
• Weekdays (Mon–Wed) are typically softer; prix-fixe and wine-pairing promos help fill the gap.
• Winter holidays and early summer events often create revenue spikes; late summer and post-holiday periods dip.
• Tourist corridors see stronger seasonality; office districts depend on corporate calendars and convention schedules.
• Weather shocks and beef price swings require nimble menu and labor adjustments to protect margin.

What factors most influence steakhouse profitability?

• Menu engineering and portion control on high-cost cuts (ribeye, tenderloin, tomahawk).
• Beverage program strength (wine by the glass, reserve bottles, classic cocktails).
• Rent level and lease structure (base versus percentage rent; TI concessions).
• Labor productivity (covers per labor hour; sales per labor hour; schedule accuracy).
• Procurement strategy (specs, yield management, forward buys, supplier relationships).

What are the updated 2025 cost ratios for food, labor, and overhead?

These are the core 2025 steakhouse cost ratios used by operators and lenders.

How does revenue per seat and per square foot compare across concepts?

Here is a practical comparison to benchmark your steakhouse capacity and layout.

What is the typical revenue by steakhouse size and location (detailed view)?

Use this table to map seats and locations to expected annual revenue for a steakhouse.

What are the current industry trends and benchmarks steakhouse owners track?

In 2025, steakhouse operators prioritize premium sourcing, beverage excellence, and precise cost control.

Demand skews to experiential dining—tableside carving, reserve wines, and chef features—while digital reservations and dynamic pricing help optimize seatings. Operators blend prix-fixe experiences mid-week to stabilize labor and improve forecast accuracy.

Benchmarks watched monthly include food cost %, beverage mix %, sales per labor hour, revenue per seat/sq ft, and private dining utilization. Operators also track guest sentiment by channel to protect check growth without discounting.

This is one of the strategies explained in our steakhouse business plan.

Keep a rolling calendar of local events to sell PDRs and boost shoulder nights.

How should I break down food vs. beverage vs. other revenue in a steakhouse?

Here is a simple steakhouse revenue-mix model you can apply.

What daily/weekly customer volumes should a steakhouse expect at different checks?

Use this illustrative table to connect check size and traffic to weekly sales.

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.

Sources

1. DojoBusiness – Steakhouse profitability (overview)
2. Businessplan-templates – Steakhouse owner earnings
3. Metrobi – Average restaurant revenue
4. Aaron Allen – Restaurant profit margins
5. Menuviel – Profit margin by cuisine benchmarks
6. Madras Accountancy – Restaurant revenue & margins
7. Lightspeed – Guide to restaurant margins
8. Restroworks – Fine dining statistics
9. Restaurant365 – Average profit margins
10. BlueCart – Restaurant profit margin