S2E9: Virtual M&A Case Walkthrough, McKinsey-style
Strategy Simplified
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How to Calculate a Profit Margin for Food Services
Costs associated with marketing, administration or operations. I didn't mention labor costs. That is the labor cost. 3500 Sorry, 650,000 Yes, 650. Okay. And then for the marketing, we have 0.65 million. So if we add these three numbers together, we should be able to get the total cost, which is around 8.8 million. And then we know the revenue is 15.4 and then the cost is 8.8. That gives us the profit of 6.6 million. We are making a profit margin of roughly, I would say 40%. A profit margin of 40% is actually a big deal for food or restaurant services.
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