How much is utilities for a restaurant?

How much is utilities for a restaurant?

Utility costs As a general rule of thumb, restaurant utilities cost around $3.75 per square foot annually. The bigger your commercial space, the more you will pay on gas and electricity.

How do you calculate utility cost for a restaurant?

To get an accurate estimate on how much your restaurant will spend on utilities, you’ll need to know the approximate square footage of your space. The average restaurant utilities cost in the U.S. includes $2.90 per square foot per year on electricity, and $0.85 per square foot/year on natural gas.

How do you calculate utility costs for a business?

Divide total utility costs by total business costs to find the decimal portion of utility expenses. For example, if your annual utility costs are $25,000 and your total business expenses are $400,000, then the portion of your total costs represented by your utility costs is $25,000 divided by $400,000, or 0.0625.

What are monthly expenses for a restaurant?

Restaurant Monthly Expenses

• Occupancy cost. This is your rent along with electricity, water, cable, phone, internet, and property insurance.
• Food cost.
• Liquor cost.
• Labor cost.
• Inventory variance and shrinkage.
• Kitchen equipment cost.
• POS system cost.
• Marketing and advertising cost.

What should food cost be in a restaurant?

To run a profitable restaurant, most owners and operators keep food costs between 28 and 35% of revenue.

What are average utility costs?

Across New South Wales, we found the average annual electricity bill to be $1,421. However, we found that bill-payers aged 18 to 29 years old reported the highest average bills in NSW at $1,828. Those aged in their 70s reported the lowest average bills at $1,092.

How much do utilities cost?

US Average Cost of Utilities per Month In the US, people who rent apartments should plan to spend at least $240 per month for utilities,1 and we’ve found that homeowners should budget closer to $400 a month. Of course, climate and energy costs vary from one state to another, so utility bills do too.

How much does a small restaurant make per year?

Payscale.com says restaurant owners make anywhere from $31,000 a year to $155,000. They also estimate that the national average is around $65,000 a year. Chron.com estimates a similar range, between $29,000 and $153,000 per year.

How do you figure out food cost for a restaurant?

To calculate the ideal food cost, first determine the food cost of each menu item. Then multiply the cost of each menu item by the number of times it was sold in a given period of time. In other words, you multiply by the sales mix. Your POS system should be able to hand you the sales mix at the touch of a button.

How much does a restaurant spend on utilities?

From our experience many restaurants budget less than 5% of their total costs to utilities. Want some real Restaurant Utility Figures? A study showed that Restaurants in the United States spend on average $2.90 per square foot (ft2) on electricity and $0.85 per ft2 on natural gas annually.

How much does it cost to run a restaurant?

According to one study, restaurants in the U.S. spend an average of $2.90 per square foot on electricity and $0.85 per square foot on natural gas annually, which breaks down to about 3% to 5% of your restaurant’s overall operating costs. Let’s crunch some more numbers.

How much energy does a restaurant use per square foot?

And heavy energy use equals expensive energy bills. According to one study, restaurants in the U.S. spend an average of $2.90 per square foot on electricity and $0.85 per square foot on natural gas annually, which breaks down to about 3% to 5% of your restaurant’s overall operating costs [2]. Let’s crunch some more numbers.

When do you need to lower your utility bill?

Industry experts agree that if your energy costs are higher than 5%, you need to take steps to lower your utility bill.