What percentage of sales should rent be for a restaurant?

DoorWorthy plans with total occupancy cost, meaning base rent plus CAM, property taxes and insurance, at 6% to 10% of sales for restaurants and bars. Restaurant industry figures put the typical share near 5% to 6%, so treat the top of the band as a ceiling to stay under, not a target.

What is a good rent-to-sales ratio?

It depends on the business. DoorWorthy's healthy bands for rent plus charges are 8% to 10% for cafés and bakeries, 6% to 10% for restaurants and bars, 10% to 15% for salons and personal services, 8% to 12% for retail stores and 10% to 15% for fitness and wellness studios. Base rent alone should sit lower, because CAM, taxes and insurance come out of the same share.

Should I start from sales or from seats?

Start from sales if you have a projection you trust, such as a lender's model or the numbers from a location you already run. Start from seats if you are earlier: the calculator works out full capacity from seats, turns, average check and days open, then plans at 75% of it so slow days are already counted.

Does a rent inside the band mean I should sign the lease?

No. It means the rent fits a common planning range for the sales you entered. Whether a particular address can produce those sales is a separate question about customers, competition and what the rules allow there. A free location check is a place to start on that.

Free calculator

How much rent can a restaurant afford?

Enter your monthly sales, or your seats and average check, and see the base rent that fits a healthy occupancy share for your type of business.

Rent you can afford$2,400 to $4,800a month in base rent

At a healthy 6% to 10% occupancy share for a restaurant or bar, after $1,200 a month in other charges.

Monthly sales used: $60,000
Rent plus charges: $3,600 to $6,000
Base rent to sales: 4% to 8%

Rent you can afford at each share

$1,200$1.2K4%outside

$2,400$2.4K6%healthy

$3,600$3.6K8%healthy

$4,800$4.8K10%healthy

$6,000$6K12%outside

Blue columns are the healthy 6% to 10% band for a restaurant or bar. Base rent after other charges, to the nearest $50.

How the math works

Rent you can afford = monthly sales × healthy occupancy share, minus other monthly charges

Healthy occupancy share: Rent plus CAM, property taxes and insurance, as a share of sales. Each business type has its own band, the same one DoorWorthy reports use:
Healthy occupancy share by business type
Business type Healthy share of sales
Café or bakery 8% to 10%
Restaurant or bar 6% to 10%
Salon or personal services 10% to 15%
Retail store 8% to 12%
Fitness or wellness 10% to 15%
Another concept 8% to 12%
Sales from seats: Full capacity is seats × turns a day × average check × days open (or customers a day × average sale × days open). The calculator plans at 75% of full capacity, the same planning case DoorWorthy reports use.
Other charges: CAM, property taxes and insurance come out of the same share, so they are subtracted from the rent. A blank charge is left out, which makes the answer higher until you add it.
Not included: Payroll, food and supplies, loan payments and build-out. This is a planning estimate for a lease conversation, not a sales or profit forecast.

Healthy occupancy share by business type
Business type	Healthy share of sales
Café or bakery	8% to 10%
Restaurant or bar	6% to 10%
Salon or personal services	10% to 15%
Retail store	8% to 12%
Fitness or wellness	10% to 15%
Another concept	8% to 12%

DoorWorthy reports run this same calculation for a real address, next to the spending, competition and rules found there.

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How much rent can a restaurant afford?

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Rent you can afford at each share

How the math works

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