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The Restaurant Financial Model: How the P&L Actually Works
Master the P&L structure restaurant operators need to understand. Learn which metrics drive profit, how to calculate them, and why most operators miss the critical insights. Read more
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How to Track Sales Per Labor Hour (SPLH) in Your Restaurant
Ask most restaurant operators how they measure labor efficiency, and they will give you one number: labor cost as a percentage of revenue. It is the metric the industry has used for decades. It is also, when used alone, one of the most misleading numbers in the restaurant business. Labor cost percentage tells you what… Read more
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Restaurant Cash Flow Forecast Template: Never Run Out of Cash Again
Every year, thousands of restaurants close not because they are unprofitable, but because they run out of cash. The P&L says the business is making money. The bank account says otherwise. And by the time the operator realizes there is a gap between those two realities, it is often too late to fix it. Cash… Read more
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Restaurant Labor Cost Template: Track Every Dollar You Spend on Staff
Labor is the largest controllable expense in almost every restaurant. It is also the one most operators track badly — if they track it at all beyond glancing at the weekly payroll number and hoping it looks right. The problem is not that operators ignore labor cost. The problem is that they measure it wrong.… Read more
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Restaurant Break-Even Analysis: Know Exactly When Your Location Starts Making Money
Every restaurant has a number — a specific dollar amount of daily or weekly sales — where revenue exactly covers all costs and the operation stops losing money. Below that number, you are burning cash. Above it, you are generating profit. That number is your break-even point, and if you do not know what it… Read more
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How to Calculate Restaurant Food Cost (Step-by-Step)
Food cost is the number that keeps most restaurant operators up at night — and for good reason. It is one of only two major cost categories you can directly control on a daily basis, and even small percentage swings translate into thousands of dollars over the course of a year. But here is the… Read more
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The Best Restaurant P&L Template for Independent Operators
I have reviewed hundreds of restaurant P&Ls over the past 15 years. The majority of them were built on templates that had no business being used by a restaurant — generic small business spreadsheets designed for companies that sell widgets, not food and labor by the hour. The restaurant P&L is a specialized document. It… Read more
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4-Wall EBITDA: The Number That Actually Tells You If a Location Is Working
4-Wall EBITDA reveals whether individual locations are truly profitable. Learn how to calculate it, why it matters more than corporate EBITDA, and benchmark your locations. Read more
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Service Charges vs. Tips: What Every Restaurant Operator Needs to Know
Service charges and tips have different tax and accounting impacts. Understand how each affects your P&L, labor calculations, and bottom line profitability. Read more
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Table Turn Rate and RevPASH: The Metrics That Tell You If Your Dining Room Is Working
RevPASH and table turns measure dining room efficiency. Learn how to calculate both metrics and align them with your P&L to maximize revenue per square foot. Read more
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Restaurant Cash Flow: Why Profitable Restaurants Still Run Out of Money
Profitable restaurants fail when cash flow breaks down. Learn the cash-to-profit gap and how to forecast the timing of your cash needs before they become crises. Read more
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PROTECTING THE BOTTOM LINE 