The 30-30-30 Rule: Why Restaurants Are Struggling Under Failed Leadership

The 30-30-30 Rule: Why Restaurants Are Struggling Under Failed Leadership

Restaurants operate on a simple but unforgiving equation: 30-30-30.

30% food costs – Ingredients, supplies, and everything it takes to put quality meals on the table.

30% labor costs – Hardworking chefs, servers, and staff who keep the doors open and customers happy.

30% overhead – Rent, utilities, insurance, and everything else required to stay in business.

That leaves just 10% (or less) in profit—in a GOOD year.

But what happens when inflation skyrockets food costs? When energy policies drive up utility bills? When labor mandates and tax hikes crush small businesses? That 10% disappears. And when that happens, restaurants, especially the small, family-owned spots that define our communities, close their doors for good.

This isn’t just about economics. It’s about livelihoods. It’s about the American Dream. And it’s being destroyed by reckless policies that make it harder, not easier, for businesses to survive.

Michigan, we need leaders who understand how business works, who know that you can’t strangle job creators with regulation and expect them to thrive.

The path forward is common sense, lower taxes, and policies that support, not punish, those who fuel our economy.