ATO benchmarks for restaurants
Restaurants earn from meals and drinks served at the table, and for some from takeaway and functions, while food, beverages, kitchen and floor staff and premises costs are their main outgoings.
General information
Total expenses as a share of turnover
Low and high end of each published range
| Turnover range | Financial year | Low end | High end |
|---|---|---|---|
| $65,000 to $500,000 | 2023-24 | 79% | 89% |
| $65,000 to $500,000 | 2022-23 | 78% | 89% |
| $500,001 to $2,000,000 | 2023-24 | 84% | 93% |
| $500,001 to $2,000,000 | 2022-23 | 84% | 92% |
| More than $2,000,000 | 2023-24 | 88% | 94% |
| More than $2,000,000 | 2022-23 | 87% | 93% |
Australian Taxation Office, Small Business Benchmarks, key ratios for 2023-24 and 2022-23 (data.gov.au), licensed under CC BY 2.5 AU. Checked 15 Oct 2026.
Cost of sales as a share of turnover
Low and high end of each published range
| Turnover range | Financial year | Low end | High end |
|---|---|---|---|
| $65,000 to $500,000 | 2023-24 | 32% | 39% |
| $65,000 to $500,000 | 2022-23 | 33% | 39% |
| $500,001 to $2,000,000 | 2023-24 | 32% | 38% |
| $500,001 to $2,000,000 | 2022-23 | 33% | 38% |
| More than $2,000,000 | 2023-24 | 31% | 36% |
| More than $2,000,000 | 2022-23 | 32% | 37% |
Australian Taxation Office, Small Business Benchmarks, key ratios for 2023-24 and 2022-23 (data.gov.au), licensed under CC BY 2.5 AU. Checked 15 Oct 2026.
What sits behind these figures in the books
- Cost of sales covers the meat, seafood, produce, dry goods and drinks bought for the menu, adjusted for what is left in the cool room, freezer and dry store at the end of the period.
- Tips paid by card are recorded separately from sales and matched to what is passed on to staff, so turnover shows only what diners spent on food and drinks.
- Invoices from butchers, greengrocers and wholesalers are entered as they arrive and matched to delivery dockets, so short or substituted deliveries are picked up before the bill is paid.
Sources
- Small Business Benchmarks, 2023-24 Benchmarks (key ratios)
Australian Taxation Office. 2023-24 financial year, released 16 March 2026. Checked 15 October 2026.
Based on Australian Taxation Office data, Small Business Benchmarks, 2023-24 Benchmarks, licensed under CC BY 2.5 AU Licence: CC BY 2.5 AU.
- Small Business Benchmarks, 2022-23 Benchmarks (key ratios)
Australian Taxation Office. 2022-23 financial year, released 17 March 2025. Checked 15 October 2026.
Based on Australian Taxation Office data, Small Business Benchmarks, 2022-23 Benchmarks, licensed under CC BY 2.5 AU Licence: CC BY 2.5 AU.
Get your books in order
Cost of sales and total expenses are only as reliable as the books behind them. Tell us how your business runs and we will suggest a bookkeeping plan that fits.