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Average Fast-Food Restaurant Has Small Profit Margin

Created on September 4, 2014

Average Fast-Food Restaurant Has Small Profit Margin

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Read the original report, "Higher Fast-Food Wages: Higher Fast-Food Prices," by James Sherk.

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The largest expenses in a fast-food operation are wages and purchases, with the average profit margin around 3 percent.

Note: Employer share of payroll taxes has been added to the ”Wages” category and subtracted from the “Other” category. Source: Heritage Foundation calculations based on data from IBISWorld, “Industry Report 72221a Fast Food Restaurants in the U.S.," May 2013.

CHART 1 • IB 4272

Tags: fast-food, restaurant, SEIU, union