PROTECTING THE BOTTOM LINE

Making Restaurants More Profitable

  • Understanding Underlying Commodity Costs

    The array of commodities that can significantly impact a restaurant’s bottom line is vast and varies according to the specific focus and offerings of the establishment. Key commodities to track might include oil and natural gas, both essential in broader operational costs, and specific food items such as beef, corn, pork, chicken, shrimp, eggs, butter, Read more

  • Fixed versus Variable Expenses

    Understanding the expenses involved in running a restaurant is crucial to managing the bottom line and achieving profitability. The complexity of expenses can be daunting, but categorizing them into two primary groups—fixed expenses and variable expenses—can clarify how they impact your restaurant’s financial health. Fixed expenses are the costs that remain constant regardless of the Read more

  • Understand Profit/Loss by Sales Channel

    The restaurant business is multifaceted, encompassing various sales channels each presenting unique challenges, opportunities, and profit margins. The dynamics of dine-in, drive-thru, take-out, delivery, catering, and other emerging channels create an intricate landscape that demands careful consideration. Each sales channel in the restaurant industry offers distinct challenges and opportunities, influencing the overall P&L. By analyzing Read more

  • Labor targets (have goals)

    Labor management is an essential aspect of restaurant operations that directly impacts the bottom line. Striking the balance between minimizing the total number of hours worked by the crew and providing an optimal experience for the guest can be challenging, but having clear targets can guide success in this area. One of the most common Read more