The Top Hospitality Operators and Their Gross Profit Margins in 2025 (Food & Drink Focused)
In the ever-evolving hospitality industry, gross profit margin remains one of the most critical indicators of a business’s financial health. As operators continue to navigate post-pandemic recovery, economic challenges, and shifting consumer behaviours, maintaining a strong gross profit margin has become more vital than ever. The gold standard is to achieve a gross margin based on food and drink (and packaging if you do any takeaway business) of 70%. However there are different sectors that typically do better than this like pizza chains and ones that do worse like sandwich places (like Pret).
Some operators combine their labour and food & drink spend into one gross margin calculation. On this basis margins will typically sit in the 35% - 50% range. We have decided to focus on operators in the 65% - 75% range as this will be showing operators that are reporting just their food & drink gross margin excluding labour costs.
Based on recent reports from Propel, we’ve identified several leading hospitality operators and analyzed their latest gross profit margin figures. Here’s how they’re performing in 2025 and what this means for the industry.
Based on recent reports from Propel, we’ve highlighted the key hospitality brands performing within this range in 2025.
Key Hospitality Operators with Gross Profit Margins in the 65%-75% Range
1. Big Mamma Group
Known for its extravagant Italian dining experiences, Big Mamma Group has reported a gross profit margin of 68.4%. This strong performance is attributed to centralized ingredient sourcing, high menu price elasticity, and strong brand loyalty.
2. Hollywood Bowl
Though primarily a leisure business, Hollywood Bowl’s food and beverage operations have been a standout, delivering a 70.1% gross profit margin. Their strategic pricing on drinks and snack offerings has allowed them to maximize revenue from their entertainment-driven model.
3. Deep Blue Restaurants
A major player in the fish and chips sector, Deep Blue Restaurants has achieved a 66.9% gross profit margin. The brand’s focus on efficient kitchen processes and value-driven menu innovation has kept costs in check while maximizing sales.
4. Greene King (Food & Beverage Operations)
While best known for its pub network, Greene King’s food and drink segment alone has recorded a 72.3% gross profit margin. Premiumization of menus and strong beverage margins have contributed to this success.
5. Heineken UK (Pub Estate Food & Drink Sales)
Heineken UK, which operates a substantial portfolio of leased and tenanted pubs, has achieved a 69.5% gross profit margin across its food and drink offerings. Its strategic partnerships with brewers and food suppliers ensure strong purchasing power and profitability.
6. Loungers
Loungers, known for its relaxed, all-day café-bars, has posted a 67.2% gross profit margin. Their flexible menu pricing and strong beverage sales have contributed significantly to their financial success.
7. Franco Manca
The popular sourdough pizza chain Franco Manca has reported a 65.8% gross profit margin. Strong ingredient sourcing strategies and an efficient kitchen model have helped the brand sustain its profitability.
8. Pizza Hut
Pizza Hut’s UK operations have achieved a 70.4% gross profit margin, benefiting from its strong delivery and dine-in sales mix, along with targeted pricing strategies.
9. McDonald's (Food & Drink Sales Only)
McDonald’s, a global fast-food leader, has recorded a 73.1% gross profit margin on its food and beverage sales. Menu innovation, strategic upselling, and global supply chain efficiencies play a crucial role in sustaining this profitability.
10. Pret A Manger
Pret has managed to post a 64.9% gross profit margin, just under our range but still notable. A mix of loyalty programs, subscription models, and premium pricing strategies have contributed to this figure.
11. Costa Coffee
The UK’s largest coffee chain, Costa Coffee, has reported a 71.2% gross profit margin. Growth in drive-thru locations and an increased focus on seasonal beverages have bolstered performance.
12. Caffè Nero
Caffè Nero has maintained a 70.5% gross profit margin. The brand’s strong customer base, premium product offerings, and loyalty-driven marketing strategies have contributed to this stability.
Key Trends Driving High Gross Profit Margins in Hospitality
Strategic Pricing Models: Premium menu items and optimized price structures are boosting margins.
Direct Supplier Relationships: Many operators are benefiting from direct sourcing agreements to minimise costs.
Limited-Time Offers & Upselling: Seasonal items and premium add-ons are helping drive revenue per customer.
Strong Beverage Margins: Alcoholic and non-alcoholic beverage sales continue to provide a significant boost to overall profitability.
What This Means for the Future of Hospitality
With increasing competition and cost pressures, hospitality brands must remain agile in their pricing and procurement strategies. The brands highlighted above are demonstrating how to balance high-quality offerings with profitable operations.
Unlock Greater Insights with Percy
For operators looking to fine-tune their profitability, Percy provides deep insights into food and drink pricing and operational efficiencies. Whether you’re scaling up your business or refining existing practices, Percy delivers the intelligence needed to stay ahead.
Discover how Percy can help you maximize your margins today.