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Industries · Food service

Restaurants and food service

How quick service and full service restaurants make money, why prime cost and table turns decide restaurant profit, how franchising and delivery aggregators change the economics, and how to crack restaurant cases.

38 min3 lessons Last reviewed
Start lesson 1 How restaurants and food service make money

Key takeaways

  • A restaurant turns ingredients and staff time into meals, using a fixed space.
  • One restaurant is the unit. Its sales are capped by seats, turns, and kitchen speed.
  • In restaurant cases, first find out who owns the restaurant: the brand, a franchisee, or a master franchisee.
By the end you will be able to
  • Explain the main restaurant formats and the franchise model
  • Calculate prime cost, table turns, and the profit of one restaurant
  • Compare the contribution of a delivery order and a dine-in order
  • Describe the main restaurant groups and delivery platforms by region and the trends of 2024 to 2026