{
  "name": "Los Angeles Restaurant Profit Margin Benchmarks",
  "description": "Gross margin, net margin, cost-share, labor, and market-size benchmarks for independent restaurants in Los Angeles, California. Ranges are planning benchmarks for owner-operated businesses, not forecasts.",
  "version": "2026 city benchmark edition",
  "city": "Los Angeles",
  "state": "California",
  "industry": "Restaurant",
  "reviewStatus": "screening",
  "coverage": "Independent restaurant operators in Los Angeles, California; national chains, franchise groups, and multi-unit operators excluded unless noted",
  "dataCompiledAt": "2026-06-22",
  "sourcesVerifiedAt": "2026-09-27",
  "license": "https://creativecommons.org/licenses/by/4.0/",
  "sourcePage": "https://hustlefin.com/benchmarks/restaurant/city/los-angeles/",
  "citation": "HustleFin (2026). Los Angeles Restaurant Profit Margin Benchmarks. Retrieved from https://hustlefin.com/benchmarks/restaurant/city/los-angeles/",
  "metrics": [
    {
      "key": "gross_margin_pct",
      "label": "Gross margin",
      "unit": "percent",
      "low": 54,
      "average": 61,
      "high": 66
    },
    {
      "key": "net_margin_pct",
      "label": "Net margin",
      "unit": "percent",
      "low": 0,
      "average": 4,
      "high": 5
    },
    {
      "key": "labor_cost_pct",
      "label": "Labor cost (% of revenue)",
      "unit": "percent",
      "low": 31,
      "average": 36,
      "high": 39
    },
    {
      "key": "rent_cost_pct",
      "label": "Rent (% of revenue)",
      "unit": "percent",
      "low": 4,
      "average": 7,
      "high": 10
    },
    {
      "key": "typical_revenue",
      "label": "Typical revenue",
      "unit": "text",
      "value": "$300,000 – $3,500,000/year for independent LA restaurants"
    }
  ],
  "labor": {
    "minimumWage": "$17.28/hr (LA city, no tip credit)",
    "stateMinimumWage": "$16.50/hr (California state, no tip credit)",
    "tippedWage": "$17.28/hr (full minimum, no tip credit allowed in CA)",
    "note": "LA County has multiple municipal wage floors. West Hollywood is $19.65/hr, Santa Monica $17.27/hr. CA law prohibits tip credits entirely. LA city wage adjusts annually July 1."
  },
  "market": [
    {
      "label": "Estimated restaurants",
      "value": 11000
    },
    {
      "label": "Commercial rent range",
      "value": "$28–40/sqft (West Hollywood/Santa Monica/Arts District), $18–28/sqft (Valley/Eastside)"
    },
    {
      "label": "Sales tax on food",
      "value": "9.5% on prepared food (6.0% state + 3.5% LA County)"
    },
    {
      "label": "Special fees",
      "value": "LA County health dept letter grades; multiple municipal minimum wages; street vendor legalization (SB 972) reshapes casual dining market"
    }
  ],
  "sources": [
    {
      "label": "U.S. Census Bureau — County Business Patterns",
      "url": "https://www.census.gov/programs-surveys/cbp.html",
      "note": "Establishment counts and payroll by industry and geography. Source of the estimated business counts on this page."
    },
    {
      "label": "BLS OEWS — Los Angeles-Long Beach-Anaheim, CA",
      "url": "https://www.bls.gov/oes/current/oes_31080.htm",
      "note": "Metropolitan-area occupational wage estimates from the BLS OEWS program."
    },
    {
      "label": "National Restaurant Association — Research",
      "url": "https://restaurant.org/research-and-media/research/",
      "note": "Industry operations data and cost-structure research for US restaurants."
    },
    {
      "label": "City of Los Angeles",
      "url": "https://www.lacity.gov/",
      "note": "City business tax registration, permits, and wage standards."
    }
  ]
}