If you’re working hard every day and still feel unsure whether all the effort and money are bringing real profit, you’re not alone. Many food business owners in Malaysia ask the same question, Is my return on investment worth it? In simple words, you want to know if what you put into your business is giving you back enough money to make it all worth it. That’s where the concept of restaurant ROI comes in.
Let’s break down what restaurant ROI means, how to calculate it properly, and most importantly, how you can improve it with smart choices, including using the right tools like EasyEat.
What is Restaurant ROI?
ROI stands for Return on Investment. In simple words, it tells you how much money you earn from the money you spend on your restaurant. If you invest RM10,000 in marketing or equipment and it brings you RM15,000 in profit, your ROI is positive, and that’s a good sign.
It’s not just about whether you’re making money or not; it’s about knowing how efficiently your money is being used. This can apply to anything, new furniture, digital ads, a kitchen upgrade, or even a new POS system.
How to Calculate Restaurant ROI?
The return on investment formula is:
ROI = (Net Profit / Investment Cost) x 100
Let’s say you spent RM20,000 to open a new outlet. After a few months, you made RM30,000 in profit. Your ROI would be:
(RM30,000 – RM20,000) / RM20,000 x 100 = 50% ROI
This means you gained 50% more than what you invested. This number helps you decide whether a certain cost is worth it or not.
Make sure to calculate your ROI after subtracting all necessary costs — ingredients, rent, staff salary, electricity, etc. Only then do you get a real idea of your profit.
What is a Good ROI for a Restaurant in Malaysia?
In Malaysia, a good ROI for food businesses can range from 15% to 30% annually, depending on your size, location, and concept. According to a report by Statista, the foodservice market in Malaysia is growing and expected to reach US$18.49 billion (about RM87 billion) in 2025.
However, don’t stress if you’re not hitting high numbers right away. If you are just starting, even 10% ROI can be acceptable as long as you’re growing steadily. Your goal should be to improve this number over time.
8 Ways to Maximise Your ROI
To make sure your ROI keeps improving, you need to do more than just cook good food. Let’s look at some ways you can increase the return on your investment:
1. Track All Your Costs and Sales
You can’t improve what you don’t track. If you don’t know how much you’re spending on each dish or how much sales you’re making per day, you’re flying blind. Use a good system to record every sale, expense, and cost.
2. Adjust Your Menu Pricing
If your dishes are priced too low, you may be selling more but earning less. On the other hand, too high pricing may push people away. Use recipe costing to find the right balance. Include all costs — ingredients, labour, packaging — and then add your desired profit margin.
3. Reduce Wastage
If you’re throwing away unused ingredients every week, you’re losing money. Start tracking your stock properly. Only buy what you need. Train your staff to portion meals properly and avoid over-prepping.
4. Focus on Best-Selling Items
Not every dish gives you the same profit. Find out which dishes sell the most and give you the highest margin. Promote these more and consider removing low-performing dishes that just take up resources.
5. Train Your Staff Well
Untrained staff can lead to mistakes in orders, slow service, or even wastage in the kitchen. Good training makes sure your team works smoothly, which improves customer satisfaction and reduces costly errors.
6. Go Digital
If you’re still using pen and paper or a basic system, you’re missing out. A proper POS system can help you track data, manage inventory, and get useful reports — all of which help improve your ROI.
7. Retain Your Customers
It’s cheaper to keep your existing customers than to find new ones. Start loyalty programmes or give small rewards to repeat customers. If someone has a good experience, they’ll come back — and that increases the value of each customer over time.
8. Market Smartly, Not Expensively
You don’t need to spend thousands on ads. Use free platforms like Instagram, TikTok, or Facebook. Post consistently, showcase your dishes, and use hashtags to attract nearby customers. If you do spend money on ads, track how much return each ad brings.
How EasyEat Can Help You Improve Restaurant ROI
EasyEat is built to help food businesses in Malaysia grow smarter. With this one system, you can handle orders, inventory, staff, and reporting — all in one place.
You can check your sales reports, know your profit and loss, and even track your busiest days and top-selling dishes. You don’t have to note down manually. With accurate data, you can make better decisions that directly impact your ROI.
The End of Day Report gives you a clear summary of how much you made, how many orders were taken, and how well your team performed. You can also view your profit and loss report with just a few taps. This way, you’re always in control of your numbers.
EasyEat also allows digital menu ordering, which means your staff make fewer mistakes, and your customers get better service. This alone helps in saving time and improving customer satisfaction, both of which increase your return on investment.
FAQ Section
Improving your restaurant ROI is not something that happens overnight, but when you start paying attention to numbers and using the right tools, you’ll see better results — and less stress. If you want to grow smarter, not harder, consider switching to a POS system like EasyEat. It’s built to help you manage and grow your business — all while improving your return on investment.
