Industry insights and figures Food and beverage service activities

Operating margin
7.5 %
▼ -3.3pp
2020
Companies
1485751
2020

Key insights Food and beverage service activities

Actionable signals from current data
EU27_2020
Average operating result: 7.5% of revenue (2020).
Personnel costs: 32.3% of revenue (2020).
Number of companies: 1,485,751 (2020).

Sector outlook Food and beverage service activities

Automated analytical commentary based on the most recent Eurostat figures

Industry overview

The Food and beverage service activities sector across EU27 average comprises approximately 1,485,751 enterprises employing about 5,981,480 people and generating €269.6 bn in net turnover in 2020. The average enterprise size is – employees per firm. This is a useful yardstick when assessing whether your own operation sits within the typical scale band of the sector.

Profitability

With a healthy operating margin of 7.5% of revenue in 2020, the sector reports €20.1 bn of gross operating surplus (Eurostat's EBITDA-equivalent, before depreciation). This figure provides the headline benchmark against which an individual operator can sanity-check their own bottom line, values significantly below indicate cost or pricing pressure, those above suggest competitive advantage worth defending.

Cost structure

The Food and beverage service activities cost mix is reasonably balanced: cost of revenue at 64.5%, personnel at 32.3% and energy at – of turnover. Without a single dominant cost driver, margin management requires attention across the full operating envelope rather than focus on any one line.

Trend & trajectory

Over the period 2011 to 2020 the operating margin moved from 12.0% to 7.5% (-4.5 percentage points), a deteriorating trajectory that warrants attention. Sectors with stable or improving margins tend to reflect successful pass-through of input costs and disciplined capacity management; declining margins typically point to either over-supply or a structural cost squeeze that warrants strategic review.

Costs by category Food and beverage service activities

Sector average % of revenue
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Cost structure for Food and beverage service activities in EU27_2020, 2011 to 2020, expressed as percentage of revenue.
Revenue / costs 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Total revenue 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Personnel costs (total) 27.8% 28.7% 28.6% 28.6% 28.7% 29.1% 29.3% 29.4% 29.7% 32.3%
Gross wages 21.6% 22.3% 22.2% 22.3% 22.5% 22.9% 23.1% 23.2% 23.5% 25.8%
Social and pension contributions 6.2% 6.4% 6.4% 6.3% 6.2% 6.2% 6.2% 6.2% 6.2% 6.5%
Other costs 60.2% 60.8% 61.2% 60.9% 60.4% 59.9% 59.9% 59.5% 59.5% 60.2%
Gross operating surplus (EBITDA) 12.0% 10.4% 10.2% 10.5% 11.0% 11.0% 10.8% 11.1% 10.8% 7.5%

Source: Eurostat Structural Business Statistics (latest available year).

Operating result over 10 years

Sector average % of revenue
Average
10.5%
Peak
12%
2011
Low
7.47%
2020
Latest
7.47%
2020

Cost mix evolution

How costs have shifted as a share of revenue

Cost distribution as % of revenue Food and beverage service activities (2020)

Recommended next steps

Based on the latest available data for Food and beverage service activities