From what I remember (i had a neighbor who was a former high level manager at a restaurant) they'll basically run at 3% profit to account for slow periods/off seasons but anything above that gets pumped into expansion to new locations or bonuses for people high up in the groups.
So if they made like a 3% profit margin + $1m they'll divide up that $1m into bonuses for people high up in the company.
I hope that makes sense.
Edit: also "business trips" to somewhere nice on the company dime where they just go eat and drink at a bunch of different restaurants.
From what I remember (i had a neighbor who was a former high level manager at a restaurant) they'll basically run at 3% profit to account for slow periods/off seasons but anything above that gets pumped into expansion to new locations or bonuses for people high up in the groups.
So if they made like a 3% profit margin + $1m they'll divide up that $1m into bonuses for people high up in the company.
I hope that makes sense.
Edit: also "business trips" to somewhere nice on the company dime where they just go eat and drink at a bunch of different restaurants.
and it's deductible "market research" so it also lowers the company's tax bill