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Restaurant: Sales Per Square Foot & Occupancy Cost

National benchmark data for full-service and casual dining restaurants. Sales per square foot, occupancy cost ratios, and performance metrics for sit-down restaurant concepts.

Avg Sales / SF

$550.00

National average

Avg Occupancy Cost

8.0%

As % of gross sales

Data Source

CoStar

Q3 2023 - Q2 2024

Industry Insights

Restaurant performance is highly sensitive to dinner-hour traffic patterns and evening accessibility.

Successful restaurant locations often benefit from entertainment or lifestyle co-tenancy.

Full-service restaurants have higher occupancy cost tolerance due to higher per-ticket revenue.

Frequently Asked Questions

What sales per square foot do casual dining restaurants average?

Casual dining restaurants nationally average $250-350/SF in annual sales. Performance depends heavily on concept type, daypart mix, bar revenue, and the strength of evening foot traffic in the trade area.

What occupancy cost is typical for restaurants?

Full-service restaurants typically target 8-10% occupancy cost. Fast-casual concepts often achieve 6-8% due to higher volume and lower labor ratios. Occupancy cost above 10% is a red flag for most restaurant formats.

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