Rent % of Revenue Benchmark
Full-service restaurants median 8% rent/revenue. Retail 10%. Gyms 14%. Office services 6%. Benchmark yours by industry.
Sit-down restaurants, bars, casual dining
How the Benchmark Works
Rent (occupancy cost) is a fixed cost that can crush otherwise-healthy operations. Industry-specific benchmarks reveal whether you're paying market rate or leaving margin on the table.
1. Pick your segment
Benchmarks vary wildly across segments. The right comparison is your peer group, not the industry at large.
2. Enter your number
Your actual metric from last quarter or year. Use a trailing-12-month average if your numbers are volatile.
3. See your percentile
Result maps to a percentile against your peer segment's P10, P25, P50, P75, and P90 benchmarks.
Frequently Asked Questions
What counts as rent for this benchmark?
Base rent plus CAM (common area maintenance), property taxes passed through, and insurance. Commonly called "occupancy cost" in restaurant and retail benchmarking. Exclude utilities unless your lease bundles them.
Why is rent % so scrutinized in restaurants?
Restaurants have thin net margins (5-10%) and rent is a large fixed cost that cannot be easily adjusted. A 2% difference in rent-to-revenue ratio often equals 30-40% difference in net profit.
What is the 10% rule for restaurants?
Common industry heuristic: full-service restaurant occupancy cost should stay under 10% of revenue; quick-service under 12%. Above those thresholds, economics get hard.
My office lease is 8% of revenue. Is that too high?
For office-based services, 8% is P75 — higher than 75% of peers. You either have a premium location or you've over-leased. Remote-first and hybrid work has pushed the P50 for office-based down to ~6%.
Does this include rent paid to yourself (related party)?
Yes, at fair market value. Rent paid to a related party entity should be benchmarked at arm's-length market rate. Under-reporting related-party rent to inflate business profitability shows up as unusually low numbers.
How do I reduce rent if I'm over benchmark?
Four options: lease renegotiation at renewal (leverage benchmarks), sublease unused footprint, relocate at lease end to right-sized space, or hybrid/remote transition to cut footprint.
Where is this data from?
National Restaurant Association, NRF retail benchmarks, Cushman & Wakefield, IHRSA for fitness, AGC for construction. 2024 data.
Should I include warehouse or storage in this?
For manufacturing and retail, yes — warehouse and storage are part of total occupancy. For SaaS and services, warehouse typically isn't relevant.
Related Tools & Reading
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Restaurant Financial Benchmarks
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Small Business Cash Reserve Benchmarks
Rent-heavy businesses need larger cash reserves — see how much.
Track Occupancy Cost Quarterly
Set a target occupancy %, get alerted if actuals drift above — before the next lease renewal compresses your margin.