Restaurant owner explains profitability rule from @earningearth

Name: Restaurant owner explains profitability rule from @earningearth
Uploaded: 2025-12-12T00:18:50.000Z
Duration: 11 s
Channel: earningearth
Description: A restaurant owner explains his core principle for maintaining profitability, known as the '30/30/30 rule.' He states that if his labor costs reach 30%, his business is in trouble, and then breaks down the rule: keeping overhead, labor, and the cost of goods sold (COGS) each under 30% to theoretically achieve a 10% profit margin.

A restaurant owner explains his core principle for maintaining profitability, known as the '30/30/30 rule.' He states that if his labor costs reach 30%, his business is in trouble, and then breaks down the rule: keeping overhead, labor, and the cost of goods sold (COGS) each under 30% to theoretically achieve a 10% profit margin.

Creator: @earningearth on TikTok

Transcript

If my labor gets to 30%, I'm in trouble. I've gotta keep my labor down. The thirty, thirty, 30 rule. You know, we try to keep our overhead under 30%, our labor under 30, and our COGS under 30. Theoretically, you get 10% profit.

Topics: Business, Restaurant, Small Business

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