The Economics of Owning a Restaurant

Every year thousands of people quit stable jobs and pour their savings into a restaurant dream. The tables are full, the reviews are five stars, the Instagram is buzzing — and yet most of them go broke within three years. In this video, we break down the brutal, hidden economics of owning a restaurant: the razor-thin 3-9% profit margins, the true cost of food and labor (prime cost), hidden traps like spoilage, equipment breakdowns, staff turnover, and delivery app fees, and the real math behind why a $1,000,000-revenue restaurant might only keep $85,000 in profit — and how a small shift in costs can wipe that out entirely. If you've ever wondered why a packed restaurant can still be losing money, this one's for you. #RestaurantBusiness #Economics #SmallBusiness