A Guide to Restaurant Monthly Expenses in the UK

Running a restaurant in the UK today isn’t easy. Between rising food prices, labour shortages, and evolving customer expectations, keeping an eye on your monthly expenses has never been more important. So what should you be tracking, and how can you turn this knowledge into smarter financial decisions?

Let’s break down the key monthly costs UK restaurants face – and explore practical ways to control them without cutting corners.

1. Food and Beverage Costs

For most restaurants, food and drink are among the biggest recurring expenses. And with 84% of UK diners saying that ingredient prices are influencing menu pricing, staying on top of your food cost formula is vital (Source: The Toast Consumer Preferences Survey 2025, where 200 UK diners were surveyed about restaurant pricing and value).

Modern restaurants are turning to tools like to help track fluctuating ingredient prices and reduce waste. Once you have reliable data, you can move on to recipe costing, plate costing, and calculating your cost of goods sold (COGS).

Toast Tip: There’s no “correct” food cost percentage. While 30% is the industry benchmark, the right number depends on your concept, margins, and pricing strategy.

2. Labour Costs

Labour is another major line item, averaging around 15% of sales according to UK Toast survey data. But the true cost includes more than hourly pay – you’ll need to account for National Insurance contributions, holiday pay, and benefits.

Smart operators calculate labour costs as a percentage of turnover or per hour, and they track rota efficiency weekly. Many UK venues now rely on tech-driven tools like Toast’s scheduling software to balance shifts with demand and avoid overstaffing.

According to the Toast Consumer Preferences Survey 2025, over 60% of UK diners say they’re supportive of higher menu prices if it means better staff pay.

3. Non-Food Product Costs (e.g. Packaging)

Takeaway and delivery are now standard revenue streams, but they come with new cost considerations. Compostable containers, bags, and cutlery should all be factored into your plate costing.

Many UK operators now build packaging costs directly into item-level food cost percentages to protect their margins – especially when takeaway represents more than 25% of revenue.

4. Equipment Costs and Maintenance

From induction hobs to KDS screens, your restaurant’s equipment needs regular maintenance. Replacement costs can be unpredictable, so a good preventative strategy is to build a monthly reserve fund into your operating budget.

Restaurants using Toast’s integrated systems (like Le Bab) have reduced kitchen downtime and improved table turns – in some cases serving guests 30% faster.

5. Rent and Occupancy Costs

Rent, rates, cleaning, and general upkeep all fall under occupancy costs – which make up around 10% of the average UK restaurant budget.

If your venue is on a long-term lease, negotiate rent reviews annually and explore energy-saving upgrades that reduce utility spend. You can also track seasonal shifts to adjust your usage levels accordingly.

6. Utilities

Gas, electricity, internet, water – these might seem predictable, but they can vary month to month. One way to smooth cash flow is to opt for balanced billing or set up direct debits to avoid late fees.

You can also monitor trends in usage with your POS and inventory data. UK operators using integrated tech say it’s helping them forecast and control utilities far more effectively than spreadsheets.

7. Marketing Spend

Whether you’re running email campaigns, printing local ads, or boosting posts on Instagram, your marketing budget should be tied to trackable outcomes.

Use Toast’s marketing and loyalty features to measure customer return rates and average spend. This helps determine what actually works and where to scale back.

8. Technology Costs

Smart tech is no longer a nice-to-have — it’s a cost saver. In the UK, restaurants now spend about as much on tech (10%) as they do on labour.

That includes:

• POS and handheld ordering

• Kitchen display systems (KDS)

• Staff scheduling software

• Payment and loyalty platforms

Technology can help streamline operations, reduce admin time, and even flag high-spend areas that need adjusting.

[insert Restaurant Invoice Automation Guide CTA]

Managing Fixed vs Variable Expenses

Some expenses (like rent and licences) are fixed. Others (like food, staff hours, and utilities) vary month to month.

Use this distinction to:

• Build separate budget lines for fixed and variable costs

• Forecast seasonal fluctuations

• Set realistic targets for margin improvement

Final Thoughts

When you actually know where your money's going each month, everything becomes clearer. Here's something that might surprise you: our latest survey found that 78% of UK customers think eating out has gotten too pricey for regular visits. But they're not staying home forever, they're just being more picky about where they spend their money. They want to feel like they're getting real value, and they appreciate places that are honest about their pricing.

The restaurants that are thriving right now? They're the ones keeping tight control over costs while still delivering what customers actually care about. So invest in the right tools and stay on top of your expenses.