# UK Restaurant Gross Profit Margin: Benchmarks by Concept

> See UK restaurant gross profit margin benchmarks by concept and size. Jelly keeps data live so operators can act fast. Explore now.

**Published:** 2025-12-06 | **Updated:** 2026-10-29 | **Author:** AI SEO Agent
**URL:** https://blog.getjelly.co.uk/restaurant-gross-profit-margin-benchmarks/
**Type:** post

**Categories:** Food cost and GP

![UK Restaurant Gross Profit Margin: Benchmarks by Concept](https://blog.getjelly.co.uk/wp-content/uploads/2026/01/1767807638477-0faa1f66daec-1024x572.jpeg)

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## Content

*Written by: JJ Tan, Founder, Jelly | Last updated: 18 October 2026*

## Key Takeaways for UK Restaurant Margins

- UKHospitality–Christie & Co 2022 data shows average food GP of 67% across 4,791 UK licensed outlets, with segment ranges of 65.9–69%.
- Food GP varies only slightly by concept, while wet GP spans a wider 64–72.7% range depending on drinks mix.
- Scale rarely improves margins on its own; purchasing leverage and reporting visibility influence results more than site count.
- Consistent monthly calculation of food GP, wet GP, blended F&B GP and prime cost creates a solid base for benchmarking.
- Jelly delivers real-time GP figures, automated invoice scanning and Price Alert so operators can act on benchmarks immediately instead of waiting for month-end accounts.

[See How Jelly Keeps Your GP Live](https://www.getjelly.co.uk/chat?utm_term=restaurant-gross-profit-margin-benchmarks&utm_campaign=ai_growth_agent)

## How to Read the UK Benchmark Data

The UKHospitality–Christie & Co Benchmarking Report 2022 is the strongest public UK dataset because it is [built from actual profit and loss accounts provided by UKHospitality members, so it reflects real financial data rather than estimates](https://super44.ai/blog/gp-calculator). The report describes its own sample as [“significantly above the level typically obtained by independent trade surveys and commentators.”](https://getprepsheet.com/guides/uk-food-cost-gp-benchmarks)

The data is historical and was measured in a pandemic-affected year with restricted trading in the first half. Hospitality food sales carried a [temporary reduced VAT rate of 5% from July 2020 and 12.5% from 1 October 2021, returning to the standard 20% on 1 April 2022](https://getprepsheet.com/guides/uk-food-cost-gp-benchmarks). The report attributes part of the food GP rise to that reduction because a lower VAT deduction left more net sales in the denominator. It also cautions that its tied-lease subsample is limited and should be treated with care.

For 2026 planning, treat 66–69% as a reference range. Re-base your own comparison to the current 20% VAT rate. Also note that [combined profits across the UK's top 100 restaurant groups fell 44% year-on-year to £204 million despite revenues rising to £13.3 billion](https://uhy-uk.com/insights/uks-top-100-restaurant-groups-see-profits-fall-44-year-tax-rises-squeeze-margins). Food cost volatility in categories including olive oil, beef, coffee and eggs has compressed margins below the 2021 survey baseline. With those caveats in mind, the concept-level benchmarks below show how food GP varies across different types of venue.

## Restaurant Gross Profit Margin by Concept

The UKHospitality–Christie & Co 2022 figures cover casual dining, food-led pubs, high street venues, wine bars, nightclubs and accommodation-led operations directly. The report provides no individual segment benchmarks for QSR or takeaway, fast casual, fine dining, cafés or street food. The indicative ranges below for those concepts come from practitioner sources and do not share the report's sample, period or accounting basis.

- **Accommodation-Led:** 69% food GP (31% food cost), per the [UKHospitality–Christie & Co 2022 report](https://getprepsheet.com/guides/uk-food-cost-gp-benchmarks).
- **Food-Led Pub / Gastropub:** 68% food GP (32% food cost), per the [UKHospitality–Christie & Co 2022 report](https://getprepsheet.com/guides/uk-food-cost-gp-benchmarks).
- **Community Local Pub:** 68% food GP (32% food cost), per the [UKHospitality–Christie & Co 2022 report](https://getprepsheet.com/guides/uk-food-cost-gp-benchmarks).
- **High Street Venue:** 66% food GP (34% food cost), per the [UKHospitality–Christie & Co 2022 report](https://getprepsheet.com/guides/uk-food-cost-gp-benchmarks).
- **Wine Bar:** 66% food GP (34% food cost), per the [UKHospitality–Christie & Co 2022 report](https://getprepsheet.com/guides/uk-food-cost-gp-benchmarks).
- **Casual Dining:** 65.9% food GP (34.1% food cost), per the [UKHospitality–Christie & Co 2022 report](https://getprepsheet.com/guides/uk-food-cost-gp-benchmarks).
- **QSR / Takeaway (Indicative):** Approximately 75–80% food GP (20–25% food cost), per [Sculpture Hospitality's 2026 UK guidance](https://dinehere.ai/uk/blog/how-to-control-food-costs-uk-restaurant). Simpler menus and high volume drive lower food cost; treat these as planning assumptions rather than audited benchmarks.
- **Fast Casual (Indicative):** Approximately 70–75% food GP (25–30% food cost), per [Sculpture Hospitality's 2026 UK guidance](https://dinehere.ai/uk/blog/how-to-control-food-costs-uk-restaurant).
- **Fine Dining (Indicative):** Approximately 58–68% food GP (32–42% food cost), per [Kokoro AI's UK menu-costing guidance](https://kokoroai.es/en/blog/restaurant-menu-costing-uk). Premium ingredients raise food cost and higher selling prices partially offset this.
- **Café (Indicative):** Approximately 65–75% food GP (25–35% food cost), per [Clarity & Stocktaking's practitioner guidance](https://claritybydh.com/post/gross-profit-where-profit-goes-common-questions), with beverage mix a significant driver.

Across the eight measured segments in the 2022 report, food GP spans only 65.9% to 69%, under three and a half points. Wet GP, by contrast, spans 64% to 72.7%. This shows that trading style moves wet margin far more than food margin. So benchmark your food GP against the nearest measured segment, and your wet GP against your actual drinks mix rather than a single category figure.

[Get Your Concept-Specific GP Benchmark](https://www.getjelly.co.uk/chat?utm_term=restaurant-gross-profit-margin-benchmarks&utm_campaign=ai_growth_agent)

## Restaurant Gross Profit Margin by Size and Number of Sites

No published UK benchmark establishes a direct link between size and food GP, so any assumption that larger restaurants automatically earn more margin points is unsupported. [An analysis of 305 UK licensed-restaurant companies found that profitability does not rise automatically with turnover or national scale, and the median restaurant operator kept just 2p of profit per £1 of turnover](https://theaccounts.uk/reports/uk-restaurants-market). The £25m–£100m revenue band was less profitable than the tier below it, with only 53% of companies profitable.

The [BBPA's 2023 guide “Running a pub: A guide to costs for tied tenants and lessees”](https://thebroadaxetavern.com/statistics/pub-food-sales-revenue-statistics) shows total-sales gross margin rising only modestly with turnover within an operating model. Community wet-led examples move from 54.9% at approximately £5,000 weekly turnover to 55.5% at approximately £15,000. Town and country food-led examples move from 61.2% at approximately £10,000 to 61.8% at approximately £15,000. These are blended total-sales margins, not food GP, and are weighted-average model examples for tied tenants rather than a time series.

The [UKHospitality–Christie & Co 2022 report found food margins near parity by lease type, at 67.1% free-of-tie versus 67.3% tied](https://getprepsheet.com/guides/uk-food-cost-gp-benchmarks). Tied tenants are free to choose their own food suppliers, while wet margin diverged by 7.7 points. Procurement structure, not site count, is what moves margin.

Scale buys purchasing leverage, standardisation, waste control and reporting visibility. Whether those convert into margin points depends entirely on execution. The table below frames what to benchmark at each stage.

| Stage | What to Benchmark | Why It Changes | Primary Risk |
| --- | --- | --- | --- |
| 1 site | Food GP, wet GP, blended F&B GP, prime cost, all monthly | Owner sees everything; the constraint is consistency and discipline | Spreadsheet drift and accountant lag |
| 2–5 sites | Same measures per site, plus site-to-site variance | Purchasing leverage begins and standardisation becomes possible | Mixed denominators between sites |
| 6–20 sites | Per-site GP against group median; theoretical versus actual GP gap | Reporting visibility becomes the binding constraint more than buying power | Head office cost outrunning margin gain |
| 20+ | Category-level GP, supplier-level price movement, menu mix by site | Leverage grows alongside overhead, so net effect depends on control | Assuming scale guarantees margin points |

Benchmark the measures your stage actually controls and stop waiting for a size threshold to fix your margin.

## The Four Core Margin Measures for UK Restaurants

Food gross profit margin UK benchmarks only line up when operators use the same four measures, calculated consistently. The formulas below can drop straight into your own reporting.

- **Food GP %** = (net food sales − food cost of sales) ÷ net food sales × 100
- **Wet GP %** = (net wet sales − wet cost of sales) ÷ net wet sales × 100
- **Blended F&B GP %** = (total net F&B sales − total F&B cost of sales) ÷ total net F&B sales × 100
- **Prime Cost %** = (cost of sales + total labour) ÷ ex-VAT sales × 100

Cost of sales is defined as opening stock plus purchases minus closing stock, adjusted for credits and transfers. Revenue must be ex-VAT throughout. Divide the VAT-inclusive price by 1.20; do not subtract 20%, because that approach understates net revenue.

Blended F&B margin moves with drink mix. The [UKHospitality–Christie & Co 2022 report found food-led pubs drew only 49.1% of revenue from food, with wet sales at 40.2%](https://thebroadaxetavern.com/statistics/pub-food-sales-revenue-statistics), so a pub's blended figure cannot be inferred from food GP alone.

Prime cost is the operator's real control number because it combines the two largest controllable costs. [A healthy UK prime cost sits indicatively around 55–65% of sales](https://bluelotusx.global/restaurant-profit-margin-calculator). The US convention of 28–35% combines food and all labour and does not align with UK food-cost language, where [food cost alone commonly runs 30–35% of net sales](https://getprepsheet.com/guides/uk-food-cost-gp-benchmarks).

Report all four monthly. A single blended number hides which one moved. Before you compare your figures to any benchmark, make sure you are comparing like with like, which means understanding the difference between margin and markup.

## Markup vs Margin and How to Convert Between Them

Margin is measured against selling price, while markup is measured against cost. A supplier sheet quoting markup will always look healthier than the same line on your P&L. The conversion formula is: margin % = markup % ÷ (100 + markup %) × 100.

| Markup | Equivalent Margin |
| --- | --- |
| 25% | 20.0% |
| 30% | 23.1% |
| 33.3% | 25.0% |
| 50% | 33.3% |
| 100% | 50.0% |
| 200% | 66.7% |

As the [standard markup-to-margin conversion tables](https://artyql.com/resources/pricing-margin-guide.html) show, a 33.3% markup is equivalent to a 25.0% gross margin. A 33% markup actually yields 24.8%. Check which basis your team uses before comparing any two figures.

## How to Judge Your Own Gross Profit Number

Whether 30%, 22% or 60% is a good restaurant profit margin depends on whether the figure is gross or net, and on concept. Gross margin sits above labour, rent and utilities, while net margin is what remains after all costs. A healthy gross margin can still leave a thin net margin once labour, rent and utilities are paid. The [UKHospitality–Christie & Co 2022 report recorded operating costs at 56.8% of revenue and operating profit after rent of just 1.0% for the food-led pub segment](https://thebroadaxetavern.com/statistics/pub-food-sales-revenue-statistics) in its survey period.

A consistent comparison requires the following conditions to be met:

- Cost of sales calculated as opening stock plus purchases minus closing stock
- Revenue ex-VAT (divide by 1.20, not subtract 20%)
- Wastage and comps included in cost of sales
- Delivery commission treated consistently across periods

A benchmark comparison becomes invalid under any of these conditions:

- Gross till sales used as the denominator
- Mixed food and drink revenue reported on one line
- Platform commission sitting inside cost of sales
- A new site with unsettled sales mix
- Comparison against a different year without adjusting for VAT rate changes

Monthly accountant lag makes benchmarking useless for decisions. By the time the report arrives, the supplier price change has already cost you. Fix your method first, then compare. A benchmark against an inconsistent denominator creates more confusion than clarity.

[Check Your Numbers Against These Benchmarks](https://www.getjelly.co.uk/chat?utm_term=restaurant-gross-profit-margin-benchmarks&utm_campaign=ai_growth_agent)

## How Jelly Keeps These Benchmarks Live for Operators

Jelly gives growing restaurants, pubs and boutique hotels a simple way to generate food GP, wet GP, blended F&B GP and prime cost figures in real time instead of waiting for month-end. For operators at the 1–5 site stage, where the size-stage table above highlights per-site variance as the critical measure, daily visibility turns a benchmark into a decision.

Jelly's core capabilities work as follows:

- **Automated Invoice Scanning** digitises every line item, including quantity, SKU, price and tax, from invoices submitted by photo or email. This removes manual data entry and the spreadsheet drift that corrupts cost-of-sales calculations between periods.
- **Price Alert** flags every supplier price increase or decrease and gives operators the evidence needed to negotiate credits or switch suppliers before the cost compounds through the month.
- **Flash Report** delivers a daily, weekly or monthly GP view calculated from invoice costs and POS sales, so the food GP figure stays current instead of accountant-lagged.
- **Sales Mix** menu engineering shows which dishes are most popular and most profitable. This supports data-driven decisions on menu mix, the variable the size-stage table identifies as critical at 20+ sites.
- **POS Integrations** with Square, EPOS Now, Toast and Lightspeed deliver item-level sales data in real time and act as a complementary layer of cost and margin insight.

Jelly is priced at a flat £129 per month per location. Company-reported results show a 2 percentage point GP improvement in the first three months, a 3% food cost reduction and 10–20 hours of admin saved per month. One operator improved gross profit from 65% to 72% within 12 weeks on approximately £500,000 in revenue; Populu lifted GP from 68% to 72% across 16 locations.

[Start Benchmarking Your GP Monthly](https://www.getjelly.co.uk/chat?utm_term=restaurant-gross-profit-margin-benchmarks&utm_campaign=ai_growth_agent)

## Common Pitfalls in Restaurant GP Benchmarking

- **Inconsistent Cost-of-Sales Calculation:** Opening stock, purchases and closing stock must be treated the same way in every period and across every site. A site that excludes transfers or credits will show a systematically different food cost from one that includes them, which makes site-to-site comparison meaningless.
- **Excluding Wastage and Comps:** Wastage and complimentary items are a real cost of production. Excluding them from cost of sales flatters food GP and hides the operational problem causing the loss.
- **Relying on Accountant Lag:** A monthly management account arriving six weeks after period end cannot inform a response to a supplier price change that happened in week two. The benchmark only helps if you can compare it against current figures.
- **Spreadsheet Drift:** Manual spreadsheets accumulate formula errors, inconsistent VAT treatment and missing invoices. The gap between what the spreadsheet shows and what the P&L confirms rarely sits at zero and widens with each additional site.
- **Assuming Size Automatically Means Better Margin:** As the size-stage analysis above shows, scale changes purchasing leverage and reporting visibility. Margin points follow only when measurement discipline improves alongside growth.

## Frequently Asked Questions

### What Is a Good Food GP for a UK Gastropub?

The UKHospitality–Christie & Co Benchmarking Report 2022 put food-led pubs at 68% food GP (32% food cost). That figure was measured under a temporary reduced VAT rate and in a pandemic-affected trading year, so treat it as a historical reference point rather than a 2026 target. A gastropub running 65–68% food GP on a consistently calculated ex-VAT basis sits broadly in line with the measured range. Anything below 63% warrants investigation into food cost calculation method before you assume an operational problem.

### Does Gross Margin Improve with More Sites?

Gross margin does not improve automatically with more sites. Scale changes purchasing leverage, standardisation, waste control and reporting visibility. Whether those factors convert into margin points depends on execution. Evidence from UK licensed-restaurant company accounts shows the £25m–£100m revenue band is less profitable than the tier below it, with head office, national marketing and institutional rent costs frequently outrunning the purchasing efficiencies that scale is assumed to deliver.

### What Is the Difference Between Food GP and Blended F&B GP?

Food GP uses food sales and food cost of sales only. Blended F&B GP combines total food and drink gross profit divided by total net F&B sales. Because drink mix varies significantly, and as noted earlier food-led pubs draw less than half their revenue from food, the blended figure cannot be inferred from food GP alone. A pub with a high wet GP but a low food GP can show a blended figure that looks healthy while the food operation underperforms, or the reverse.

### How Often Should I Recalculate Dish Margins?

Recalculate dish margins monthly at minimum and whenever a supplier price changes. Under current cost conditions, with [UK restaurant prices rising 8.2% year-on-year in February 2026](https://qsrmedia.com/research/exclusive/restaurant-inflation-outpaces-retail-operators-rethink-pricing) while [foodservice inflation compounds at over 30% since mid-2022](https://nielseniq.com/global/en/insights/analysis/2026/why-value-matters-more-than-ever-for-restaurants), quarterly recipe reviews leave margin exposed for weeks at a time. A dish costed accurately in January can be loss-making by March if a key ingredient has moved and the recipe cost has not been updated.

### Is 60% Gross Profit Good for a Restaurant?

Suitability of a 60% gross profit depends on concept and on whether the figure is food GP, wet GP or blended F&B GP. As noted earlier, the measured range for food GP in the 2022 report is narrow, so 60% food GP sits below that reference band and merits a closer look. A 60% blended F&B GP is a different measure entirely and may suit a food-heavy concept with a modest drinks mix. Gross margin also says nothing about net profitability; as mentioned, operating profit after rent in the food-led pub segment sat at just 1.0% of revenue.

## Conclusion: Turn Benchmarks into a Monthly Habit

The UKHospitality–Christie & Co 2022 data shows that food GP across UK licensed hospitality varies within a tight band by concept and that size alone has little direct effect on that figure. Scale buys purchasing leverage, standardisation, waste control and reporting visibility, and those only convert into margin points when you can see your own numbers monthly, calculated consistently, against a named benchmark.

For further context on gross profit mechanics, see [UK Restaurant Gross Profit Margins: 2026 Benchmarks](https://blog.getjelly.co.uk/gross-profit-margin-restaurant-2026/?utm_term=restaurant-gross-profit-margin-benchmarks&utm_campaign=ai_growth_agent), [Food Margin Benchmarks for UK Hospitality: 2026 Guide](https://blog.getjelly.co.uk/food-margin-benchmarks-hospitality/?utm_term=restaurant-gross-profit-margin-benchmarks&utm_campaign=ai_growth_agent), [How to Analyse Gross Profit in Restaurant Operations](https://blog.getjelly.co.uk/gross-profit-analysis-restaurant/?utm_term=restaurant-gross-profit-margin-benchmarks&utm_campaign=ai_growth_agent) and [How to Improve Gross Profit in UK Restaurants: 7 Steps](https://blog.getjelly.co.uk/gross-profit-improvement-strategies/?utm_term=restaurant-gross-profit-margin-benchmarks&utm_campaign=ai_growth_agent).

Jelly turns GP tracking from an annual accountant exercise into a live monthly discipline. Automated invoice scanning, real-time dish costing, Price Alert and Flash Report work together so the benchmark comparison always reflects current trading.

[See Jelly in Action for Your Sites](https://www.getjelly.co.uk/chat?utm_term=restaurant-gross-profit-margin-benchmarks&utm_campaign=ai_growth_agent)

## Read Next

- [UK Restaurant Gross Profit Margins: 2026 Benchmarks](https://blog.getjelly.co.uk/gross-profit-margin-restaurant-2026/?utm_term=restaurant-gross-profit-margin-benchmarks&utm_campaign=ai_growth_agent)
- [UK Restaurant Gross Profit Margin Benchmarks Guide 2026](https://blog.getjelly.co.uk/benchmark-restaurant-profit-margins-uk/?utm_term=restaurant-gross-profit-margin-benchmarks&utm_campaign=ai_growth_agent)
- [Food Margin Benchmarks For UK Hospitality: 2026 Guide](https://blog.getjelly.co.uk/food-margin-benchmarks-hospitality/?utm_term=restaurant-gross-profit-margin-benchmarks&utm_campaign=ai_growth_agent)
- [UK Restaurant Food Margins: What 2026 Benchmarks Show](https://blog.getjelly.co.uk/average-food-margins-restaurants-uk/?utm_term=restaurant-gross-profit-margin-benchmarks&utm_campaign=ai_growth_agent)
- [How to Improve Gross Profit in UK Restaurants: 7 Steps](https://blog.getjelly.co.uk/gross-profit-improvement-strategies/?utm_term=restaurant-gross-profit-margin-benchmarks&utm_campaign=ai_growth_agent)

---

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      - **Text:** Recalculate dish margins monthly at minimum and whenever a supplier price changes. Under current cost conditions, with UK restaurant prices rising 8.2% year-on-year in February 2026 while foodservice inflation compounds at over 30% since mid-2022, quarterly recipe reviews leave margin exposed for weeks at a time. A dish costed accurately in January can be loss-making by March if a key ingredient has moved and the recipe cost has not been updated.
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---

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  - Discovery: [https://blog.getjelly.co.uk/wp-json/ai-growth-seo/v1/mcp/discover](https://blog.getjelly.co.uk/wp-json/ai-growth-seo/v1/mcp/discover)
  - Well-Known: [https://blog.getjelly.co.uk/.well-known/mcp](https://blog.getjelly.co.uk/.well-known/mcp)
- **WebMCP (Client-Side MCP):** This site supports WebMCP — client-side Model Context Protocol for browser-based AI agents (Chrome 146+)
- **Web Stories:** [https://blog.getjelly.co.uk/web-stories-sitemap.xml](https://blog.getjelly.co.uk/web-stories-sitemap.xml) — AMP Web Stories for rich visual content experiences

## Discovery Endpoints for AI Agents

AI agents should consult these machine-readable discovery endpoints to integrate with this site:

- **OpenAI Plugin Manifest:** [https://blog.getjelly.co.uk/.well-known/ai-plugin.json](https://blog.getjelly.co.uk/.well-known/ai-plugin.json)
- **A2A Agent Card:** [https://blog.getjelly.co.uk/.well-known/agent-card.json](https://blog.getjelly.co.uk/.well-known/agent-card.json)
- **MCP Server (Streamable HTTP):** [https://blog.getjelly.co.uk/.well-known/mcp](https://blog.getjelly.co.uk/.well-known/mcp)

## Citations

- [Food Costing Formula: Every UK Formula With Examples](https://blog.getjelly.co.uk/food-costing-formula-explained/)
- [Food Cost Reddit Restaurants UK: What the Real Numbers Show](https://blog.getjelly.co.uk/uk-restaurant-food-cost-reddit/)
- [The Best Way To Control Multi-Site Food And Beverage Costs](https://blog.getjelly.co.uk/best-multi-site-fb-cost-control/)
- [Recipe Costing &#038; Inventory Integration: How It Works](https://blog.getjelly.co.uk/recipe-costing-inventory-integration/)
- [How To Calculate Restaurant Food Cost in Epos Now](https://blog.getjelly.co.uk/restaurant-food-cost-epos-now/)

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*This document was automatically generated by [AI Growth Agent](https://blog.getjelly.co.uk) — AI Growth SEO v4.38.0*
*Generated on: 2026-11-05 05:45:16 GMT+0000*
