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Running a Restaurant/food court profit sharing


Good day,

Me and my friend are planning to open up a food court center. We are planning to charge food court operator on profit-sharing concept, rather than fixed rental.

We know that costing calculation in food business are varied and depending on type of foods. We are looking to charge food court operator based on their Sales. We want to create a threshold of percentage, based on each operator sales.

My questions are;

1) Which figures should we based on; Sales $ or Sales Qty?
2) What threshold to be made?
3) How much percentage are reasonable to be charge? So mgmt and food court operator have win-win situation
4) As food operator sales/turnover increased, percentage of profit sharing will be increased too.

Thank you for your time. Regards

The rental should be based on gross sales dollars. Charging on quantity doesn't sound equitable since you could have one operator selling ice cream cones for $3 in a large quantity, while another operator may have a check average of $10, but have fewer sales.

Your basis should be minimum cost - utilities, maintenance, cleaning and common areas. That should be the minimum rental, then add percentage of sales.

These type of arrangements depend on many factors. What are you supplying to the operator? Space, electricity, gas, cleaning people, chairs, tables, advertising, etc. If you are covering your minimum costs with a minimal base rent, these arrangements can be 4 to 10 percent depending on the agreements.

Obviously, if you bring more guests to the food court, sales will be higher and everyone profits.

Let me know if you have other questions.

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Larry Edger


Multi concept restaurant owner. Just finished fourth restaurant. Can answer questions on all aspects of running, owning and starting a restaurant, cafe or hospitality operation. Enjoy helping other restaurant owners. Most "consultants" have no idea what a restaurant operator needs to be successful. Let me know if I can assist you finding answers to your operating and marketing questions. Accomplished chef and menu development a particular talent for upscale casual restaurants.


Owner and operator of several multi-concept restaurants. Successful entrepreneur, started businesses from scratch on many occasions. Know the problems with planning and running a restaurant. Always independent operations and not the product of chain restaurants.

As an author of The Restaurant Ebook, A Guide to Keeping Your Dream Off the Chopping Block, I have helped hundreds of restaurateurs to market and run a better restaurant.For more information visit or

Attended Ohio State University and have gone through many extended classes relating to marketing and management. Written many courses and training manuals.
Currently building fourth restaurant and created a blog to keep track of daily activities. Readers can see the various steps from leasing to opening. Visit

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