What is a good return on investment for a restaurant?

15 to 25 percent
What is a good ROI for a restaurant? While there are many factors to consider, in general, a good restaurant ROI ranges from 15 to 25 percent. For that reason, it’s very rare for a restaurant that’s less than 3 years old to even turn a profit.

Which has the greatest likelihood of the highest return on investment?

The stock market has long been considered the source of the highest historical returns. Higher returns come with higher risk. Stock prices are more volatile than bond prices.

What is the average return on a restaurant?

The range for restaurant profit margins typically spans anywhere from 0 – 15 percent, but the average restaurant profit margin usually falls between 3 – 5 percent.

What businesses are profitable?

Most profitable small businesses

1. Auto repair. Taking a car to the shop for even simple repairs can be a challenge.
2. Food trucks.
3. Car wash services.
4. Electronics repair.
5. IT support.
6. Personal trainers.
7. Newborn and post-pregnancy services.
8. Enrichment activities for children.

Is investing in a restaurant worth it?

The restaurant industry is a tough one to succeed in. When you do it on your own, you have more risk of failure, but you also own all of the business. When you bring on restaurant investors, you have more money to work with and expertise to increase the longevity of the business, but you lose control and profits.

How profitable is owning a restaurant?

Entrepreneurs interested in opening a restaurant may think that an experienced cook and a good location will undoubtedly bring in huge profits for their business. In reality, the restaurant industry is characterized by small profit margins — around 2 to 6 percent on average according to the Restaurant Resource Group.