Japanese cuisine is renowned for its diverse range of dishes, each with its unique flavors and presentation. For restaurant owners, understanding the profitability of these dishes is critical for business success. Profitability is determined by the cost of goods sold (COGS), selling price, and overhead costs. The most profitable Japanese dishes typically have a high selling price and low COGS, resulting in a high profit margin. Here, we will explore the five most profitable Japanese dishes, their estimated profit margins, and ways to enhance their profitability.
Ramen
Ramen, a popular Japanese noodle soup, has an estimated profit margin of around 85-90%. The primary ingredients include noodles, pork belly, green onions, bamboo shoots, and mushrooms, which cost approximately $1-$2 per bowl. The average selling price of a bowl is around $12-$13, leading to a gross profit of about $11-$12 per bowl. The high profit margin is due to the relatively low cost of ingredients and the high selling price.
To improve profitability, restaurants can consider offering a variety of ramen options, such as vegetarian or spicy versions, to cater to different customer preferences. Additionally, offering side dishes or drinks that pair well with ramen can increase the average transaction value.
Udon
Udon, a type of thick wheat noodle, has an estimated profit margin of around 90-95%. The ingredients include wheat flour, salt, water, green onions, and mushrooms, costing roughly $1 per serving. With a selling price of around $11-$12, the gross profit per serving is approximately $10-$11.
Restaurants can enhance profitability by offering different types of udon dishes, such as curry udon or tempura udon. Additionally, sourcing ingredients in bulk or from local suppliers can help reduce COGS and increase profit margins.
Yakitori
Yakitori, skewered grilled chicken, has an estimated profit margin of around 80-85%. The cost of chicken, green onions, sauce ingredients, and skewers is approximately $1-$2 per skewer. With a selling price of around $8-$9 per skewer, the gross profit is about $7-$8.
To boost profitability, restaurants can consider offering a variety of yakitori options, such as different types of meat or vegetable skewers. Offering a set meal with yakitori, rice, and soup can also increase the average transaction value.
Oyakodon
Oyakodon, a chicken and egg rice bowl, has an estimated profit margin of around 90-95%. The cost of chicken thighs, eggs, onions, and rice is approximately $1-$2 per serving. With an average selling price of around $16-$17, the gross profit is about $15-$16 per serving.
Restaurants can enhance profitability by offering different versions of oyakodon, such as using different types of meat or adding extra toppings. Additionally, sourcing ingredients in bulk or from local suppliers can help reduce COGS and increase profit margins.
Sushi
Sushi, a dish of vinegared rice accompanied by various ingredients, has an estimated profit margin of around 70-75%. The cost of raw materials such as vegetables and sugar is approximately $5 per sushi roll. With a selling price of around $18, the gross profit is about $13 per roll.
To boost profitability, restaurants can offer a variety of sushi options, such as different types of fish or vegetarian sushi. Offering a set meal with sushi, miso soup, and a side dish can also increase the average transaction value.
Unit prices calculated for COGS have been sourced from the following websites and Otter’s internal menu data. This content does not represent a guarantee or expert business advice.
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