The numbers nobody showed me.

Straight answers to the questions Sydney operators actually ask at eleven at night, when the room was full and the bank says otherwise. Every figure on these pages comes from the Australian hospitality industry's own benchmarking data, not from a blog quoting an American number. Everything else comes from eleven years running Great Aunty Three in Enmore.

I lost money on dishes I loved. I rostered to habit. I read my first lease as a tenant who did not know what he was reading. These pages are what I wish someone had handed me in year two.

• Why is my restaurant busy but not profitable?
  Wages and food alone average 78% of turnover for Australian venues. A full room does not change that ratio. It multiplies it. Here is where it goes.
• What is the average restaurant profit margin in Australia?
  Almost two in five Australian venues made 2% or less. Only 11.1% cleared 10%. Here is the full distribution and what a healthy venue actually targets.
• What percentage of sales should wages be in an Australian restaurant?
  The target is 30% to 35% of sales. Australian operators reported 40.25%. That five point gap is the single biggest pressure on venues right now.
• What should food cost percentage be in an Australian restaurant?
  The target is 25% to 35%. Australian operators reported an average of 38% of turnover. Here is what closes that gap, and the four things that widen it.
• Should I raise my menu prices?
  Lift a $20 dish with a $7 food cost by 5% and gross profit rises 7.7%. You can lose 7% of covers before you are worse off. Here is the maths.
• Why is my cafe losing money?
  Six numbers tell you where a cafe leaks: coffee cost, food cost, staff, rent, overheads and net. Here are the targets and the three that usually sink it.
• How do I make my restaurant run without me?
  If every decision comes through you, you own a job, not a business. The five systems that let a venue run without its owner, and the test that proves it.
• What should restaurant rent be as a percentage of turnover in Australia?
  Aim for 10% of sales and treat 15% as the ceiling. Rent is the one cost you cannot roster your way out of. Here is what to check before you sign.

Where to start

If the room is full and the money is not, start with busy but not profitable. If you want to know whether your venue is normal, start with the average profit margin and place yourself on the distribution table.

If you want the leaks found and named in writing rather than working it out alone, that is the Full Plate Method. One client at a time, by application. If the venue runs fine and the room is the problem, that is Forkcast.