Purchases – Purchases comprise the largest cost for industry operators, which include items such as alcohol, food, and other incidentals, like paper towels, cleaning equipment, and glassware.
Wages – Wages are the next largest expense category for an average operator’s revenue.
Rent and utilities – Rent and utilities are also a major expense.
Other Expenses – Other costs include those incurred in the normal course of business, such as insurance, accounting and legal costs, licensing fees, stationery, and office costs. These costs account for an estimated 6.0% of the average restaurant’s revenue.