average profits in the realm of 2% are for grocery stores not restaurants.

Lets say you're a moderately successful restaurant that sells 200 breakfasts at $10 each. At 2% profit that means the total profit on 200 breakfasts is just $40 for the whole morning.

You're just out to lunch and those are not the correct profit margins or realistic. You might be thinking about grocery stores whose net margins might be in that realm of 2-4%. I don't know where you got your understanding of how the pricing works but please don't run a restaurant.

Your mistake is that you have separated overhead and labour, when they're out of the same 1/3. 1/3 overhead including rent, 1/3 ingredients, 1/3 in the pocket.