Back to glossary

Net Margin

Net profit as a percentage of sales, what is left after every cost, including labour, rent, and overheads.

Net margin (or net profit margin) is the bottom line as a share of sales:

  • Net margin % = net profit ÷ sales × 100

Most UK restaurants run a net margin of roughly 3% to 9%; the best-run sites push into the low teens. Because the band is thin, small savings on prime cost move it noticeably. The profit margin guide covers the levers that shift it.