Revenue per square meter reveals if your restaurant space generates enough income to justify its cost. Most operators can't tell you their exact revenue per m², yet this metric determines if your rent is sustainable. Calculate this essential KPI to benchmark your performance against industry standards.
Why revenue per m² matters
Rent hits your books every month regardless of covers served. You could serve 50 guests or 500 – that lease payment stays identical. Calculating revenue per square meter shows if you're maximizing your space investment.
💡 Example:
Restaurant of 120 m² with €45,000 revenue per month:
- Revenue per m²: €45,000 ÷ 120 = €375/m²
- At 150 m² this would mean €56,250 in revenue
Conclusion: This business performs well for its size
The formula explained
The math is straightforward, but you need to count square meters correctly:
Revenue per m² = Monthly revenue ÷ Total floor space
⚠️ Important:
Include the entire building, including kitchen, storage and restrooms. You pay rent on the total floor space, so it needs to be included in the calculation.
What are good benchmarks?
Revenue per m² varies dramatically based on concept and location. From analyzing actual purchasing data across different restaurant types, realistic targets include:
- Fine dining: €400-600/m² per month
- Casual dining: €300-500/m² per month
- Fast casual: €500-800/m² per month
- Café/bistro: €250-400/m² per month
- Delivery only: €800-1200/m² per month
💡 Comparison example:
Two restaurants, both with €40,000 revenue per month:
- Restaurant A (100 m²): €400/m²
- Restaurant B (160 m²): €250/m²
Restaurant A uses its space much more efficiently, despite equal revenue.
How to improve this figure
Struggling with low revenue per m²? Several tactics can boost efficiency:
- More tables: Optimize your layout without compromising quality
- Higher table turnover: Faster service means more covers per evening
- Higher average check: Sell more drinks, appetizers, desserts
- Additional revenue: Lunch, catering, events, delivery
💡 Practical example:
Adding lunch service increases your revenue per m²:
- Dinner only: €35,000/month
- Dinner + lunch: €48,000/month
- Same floor space, 37% more revenue per m²
Relationship with rent costs
Your rent shouldn't exceed 6-10% of total revenue. Knowing your revenue per m² helps evaluate if your current location makes financial sense.
⚠️ Important:
With very low revenue per m², your building might be too large for your concept. Sometimes a smaller space in a better location is more profitable.
Monthly monitoring
Track this metric monthly to catch trends early. Rising revenue per m² signals improved efficiency. Declining numbers often reveal occupancy issues or shrinking check averages.
Food cost management systems can automate this calculation and track trends without manual number-crunching.
How do you calculate revenue per m²? (step by step)
Measure your total floor space
Measure all the space you pay rent for: guest area, kitchen, storage, restrooms, office. Add everything together for your total square meters.
Gather your monthly revenue figures
Get your revenue figures from the past month from your POS system. Use total revenue including VAT, as it comes in on your account.
Calculate revenue per square meter
Divide your monthly revenue by total floor space. The result is your revenue per m² per month. Compare this with the benchmarks for your type of business.
✨ Pro tip
Track your revenue per m² against the same month last year for 18 months running to spot real trends. This longer timeline reveals if changes in efficiency are seasonal blips or genuine improvements.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
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Frequently asked questions
Do I only count the guest area or also the kitchen?
Include the entire building where you pay rent. Kitchen, storage, and restrooms all count since you're paying for that total square footage.
What is good revenue per m² for a restaurant?
Casual dining typically generates €300-500 per m² monthly. Fine dining often hits €400-600, while fast casual can reach €800 per m².
How often should I check this figure?
Monitor revenue per m² monthly to spot trends quickly. Rising figures indicate better efficiency, while declining numbers suggest occupancy or average check problems.
What if my revenue per m² is too low?
Focus on faster table turnover, higher check averages, or add revenue streams like lunch service. Sometimes your space is simply oversized for your concept.
Should I calculate with revenue including or excluding VAT?
Use revenue including VAT since that's what actually hits your bank account. This reflects the true cash generation of your space.
Does seasonality affect my revenue per m² calculations?
Most restaurants see 15-25% swings between peak and slow months. Track your numbers quarterly to identify patterns and adjust expectations accordingly.
📚 Sources consulted
- EU Verordening 852/2004 — Levensmiddelenhygiëne (2004) — Official source
- EU Verordening 853/2004 — Hygiënevoorschriften voor levensmiddelen van dierlijke oorsprong (2004) — Official source
- EU Verordening 1169/2011 — Voedselinformatie aan consumenten (2011) — Official source
- NVWA — Hygiënecode voor de horeca (2024) — Official source
- NVWA — Allergenen in voedsel (2024) — Official source
- Codex Alimentarius — International Food Standards (2024) — Official source
- FSA — Safer food, better business (HACCP) (2024) — Official source
- BVL — Lebensmittelhygiene (HACCP) (2024) — Official source
- Warenwetbesluit Bereiding en behandeling van levensmiddelen (2024) — Official source
- WHO — Foodborne diseases estimates (2024) — Official source
Food Standards Agency (FSA) — https://www.food.gov.uk
The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.
Written by
Jeffrey Smit
Founder & CEO of KitchenNmbrs
Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.
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