IDR Unit Economics 2023

Aug 10, 2023 | Insights, Restaurant Research

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Report Coverage:

RR’s Industry Data Report on Unit Economics provides: (1) FYE 2022 unit-level AUV along with COGs, labor, royalty, advertising, other operating and EBITDAR margin estimates for 47 chains; (2) a 5-year history of unit economic performance; (3) an analysis of food and labor cost drivers; (4) leverage ratio ranges from RR’s annual lender survey; (5) median G&A & rent margins; and (6) an overview of minimum wage trends.


  • The average 2022 EBITDAR margin for the $1B+ Chains declined -2.1% to an all-time low because of higher COGs (+1.25%), labor (+0.65%) and other operating costs (+0.2%), despite higher prices and sales leverage.
  • Notably, even though the 2022 average unit-level EBITDAR dollar amount declined -5.6% to $392k, this amount represents the 3rd best results in RR’s history because of a record high AUV.
  • 1H:23 store-level margins for the $1B+ publicly traded restaurant chains improved +2.5% to 18.3% due to the benefit of higher sales and lower costs (COGS -1.35%, labor -0.8% and rent & other op. costs -0.4%).
  • Store-level margin outlook benefits from a favorable commodity cost outlook through 2023.
  • Franchisee leverage levels remain healthy.

Unit Margins 2022 Graph

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