The margins for hospitality in general are very tight, which is why it's essential to put a precedent on managing costs and ensuring your pricing is correct. For a cafe with a revenue of $500k+ per year, you should be aiming for a gross profit of 60% to 65%. Employee wages are generally around 30% to 35% so net profit before owners salary will ideally average around 8% or up to 15% for the better businesses.