Gross Margin

The gross margin indicates what percentage of revenue remains after deducting the cost of goods.

Definition

The gross margin indicates what percentage of revenue remains after deducting the cost of goods.

Background & relevance for restaurant operators

A gross margin of 65–75% is a good benchmark in the restaurant industry. It is calculated as (Revenue − Cost of Goods) ÷ Revenue × 100. Platforms like Lieferando significantly reduce the effective gross margin through their commissions — an own ordering system helps protect it.

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