# Gross margin benchmarks for Australian fish and chip shops

Source: https://ivankamenken.com/benchmarks/fish-and-chips-shops · By Ivanka Menken, Strategic Mentor · Last updated 21 October 2026

In the ATO 2023-24 small business benchmarks, Australian fish and chip shops turning over more than $500,000 report cost of sales of 44% to 50% of turnover, a gross margin before wages of 50% to 56%. Total expenses run 81% to 90%, which leaves 10% to 19% of turnover before the owner, family members and tax are paid.

## What are the 2023-24 benchmarks for fish and chip shops?

The ATO splits each industry into turnover bands and publishes a range for each. The band closest to a business turning over $500,000 to $3,000,000 is the high turnover range: more than $500,000. The figures in the text on this page come from that band, and the table shows every band the ATO publishes for fish and chip shops.

Cost of sales here excludes wages: the ATO takes salary and wages out of it. So one minus cost of sales is a gross margin before wages, and the gap between cost of sales and total expenses is where wages, rent and every other cost sit.

| Ratio, % of turnover | Low turnover range ($65,000 to $250,000) | Medium turnover range ($250,001 to $500,000) | High turnover range (More than $500,000) (closest to $500K to $3M) |
|---|---|---|---|
| Total expenses (ATO) | 79% to 86% | 80% to 89% | 81% to 90% |
| Cost of sales, excluding wages (ATO) | 43% to 49% | 45% to 51% | 44% to 50% |
| Gross margin before wages (calculated) | 51% to 57% | 49% to 55% | 50% to 56% |
| Left after total expenses (calculated) | 14% to 21% | 11% to 20% | 10% to 19% |

## What do these figures mean for cash and payroll in fish and chip shops?

At the band’s ratios, a business turning over $1,000,000 would have $100,000 to $190,000 left after total expenses, about $1,920 to $3,650 a week. That pool has to cover your own pay, tax, loan repayments beyond the interest already counted, and any growth you fund yourself.

At the midpoint, fish and chip shops keep 14.5% of turnover after total expenses, level with the median of 14.5% across the 96 industries on this site.

Size changes the picture. Businesses in the low band ($65,000 to $250,000) keep 14% to 21% of turnover; in the band closest to you it is 10% to 19%. Part of the reason is in how the ATO counts: wages paid to staff are an expense, while payments to associated persons are left out. A bigger business carries a bigger payroll, so each extra dollar of turnover arrives with more cost attached.

## How much does price change the margin for fish and chip shops?

At the midpoints, fish and chip shops keep a gross margin before wages of 53%, against a median of 45.8% across the 52 industries on this site where the ATO publishes cost of sales. Between cost of sales and total expenses sit wages, rent and everything else: about 38.5% of turnover at the midpoints.

Ivanka Menken’s chain starts with price: prices too low, margins thin, growth eats cash, payroll becomes a monthly fear. As arithmetic only, if fish and chip shops in this band charged 5% more for the same work, with the same volume and the same costs, cost of sales would fall to about 42% to 48% of turnover, the gross margin before wages would rise from 50% to 56% to about 52% to 58%, and the share left after total expenses from 10% to 19% to about 14% to 23%.

At the midpoint that is 14.5% becoming 18.6% of turnover, about 28% more left over from the same work. Whether your clients would accept the price is a separate question, and the one worth testing.

## Where do fish and chip shops sit among Accommodation and Food Services industries?

We grouped the ATO industries under their ANZSIC divisions so you can compare fish and chip shops with their neighbours. Of the 9 Accommodation and Food Services industries on this site, fish and chip shops keep the largest share of turnover after total expenses, using each industry’s band closest to $500,000 to $3,000,000.

The grouping is ours, not the ATO’s; the ratios are the ATO’s. Neighbouring industries face similar costs, so a large gap to a close neighbour is worth a question about price or about the mix of work.

- Fish and chips shops (this page): 14.5% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/fish-and-chips-shops
- Catering services: 14% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/catering-services
- Kebab shops: 12.5% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/kebab-shops
- Restaurants: 11.5% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/restaurants
- Takeaway food services: 11.5% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/takeaway-food-services
- Chicken shops: 11% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/chicken-shops
- Coffee shops: 10.5% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/coffee-shops
- Pubs, taverns and bars: 10.5% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/pubs-taverns-bars
- Takeaway pizza shops: 9.5% of turnover left after total expenses (midpoint). https://ivankamenken.com/benchmarks/pizza-shops

## How do you check your own numbers against these benchmarks?

Take last financial year’s turnover excluding GST. Divide cost of sales, without wages, by it; then divide total expenses, less payments to associated persons, by it. Compare both with the 44% to 50% and 81% to 90% ranges above.

A benchmark tells you where you sit. It does not tell you why, or which decision to make next. Three free tools on this site turn the comparison into a monthly habit.

- The free five-number scorecard: https://ivankamenken.com/scorecard
- The margin-first scaling test: https://ivankamenken.com/margin-first-scaling-test
- The 13-week cash view: https://ivankamenken.com/13-week-cash-flow-for-founders

If you want someone to read the numbers with you each fortnight, that is what Ivanka’s 1:1 mentoring is for: https://ivankamenken.com/mentoring

## Frequently asked questions

### What is a typical gross margin for fish and chip shops in Australia?

In the ATO 2023-24 benchmarks, fish and chip shops turning over more than $500,000 report cost of sales of 44% to 50% of turnover, so the gross margin before wages is about 50% to 56%. The ATO excludes salary and wages from cost of sales, so your own figure is only comparable if you take wages out too.

### Which ATO turnover band applies to fish and chip shops turning over $1,000,000?

For fish and chip shops, the ATO 2023-24 bands are: low turnover range, $65,000 to $250,000; medium turnover range, $250,001 to $500,000; high turnover range, more than $500,000. A business turning over $1,000,000 sits in the high turnover range. Use last year’s turnover excluding GST to find yours.

### Are the ATO figures before or after the owner’s pay?

Before most of it. The ATO subtracts payments to associated persons, such as family members, from total expenses, and a sole trader or partner does not pay themselves a wage at all. So the share left after total expenses is broadly what funds the owner, tax, loan repayments and growth. Your accountant can tell you how your own returns are set up.

### What does it mean if my business is outside the range?

The ATO says a business outside the key benchmark range may have room to improve, and it uses the key benchmark to spot businesses that may not be reporting all their income. Each range covers the 30% of businesses around the industry average, so many legitimate businesses sit outside it. Check your figures with your accountant first.

## Source and licence

Source: Australian Taxation Office, Small Business Benchmarks, 2023-24 data, published at https://data.gov.au/data/dataset/small-business-benchmarks and licensed under Creative Commons Attribution 2.5 Australia (CC BY 2.5 AU), https://creativecommons.org/licenses/by/2.5/au/. Ratios are reproduced as published; the margins, midpoints, dollar examples, groupings and comparisons are calculated by ivankamenken.com. The ATO does not endorse this page.

All benchmarks: https://ivankamenken.com/benchmarks