Category: Expenses

• Expenses

  Supplier Rebates

  Understanding rebates in the restaurant industry can be a valuable tool for maximizing profit, particularly when dealing with beverage suppliers like Coke and Pepsi. Rebates are essentially discounts offered to restaurant owners based on the volume of product purchased over a specified period, such as annually. The reason behind this…

  August 30, 2023
• Expenses

  Distribution Channels

  Understanding the logistics of getting products to your restaurant is a vital aspect of running a profitable business. The transportation and delivery of food, paper items, and other supplies usually come through a broadline distributor. This distributor is responsible for delivering cases of goods to your restaurant, typically charging a…

  August 29, 2023
• Expenses

  Inventory Management

  Inventory management is a vital aspect of restaurant operations, having a direct impact on the bottom line. Maintaining a clear understanding of inventory levels is essential, requiring weekly assessments and more detailed counts at the close of each financial period, as well as at the year’s end. Carrying an excessive…

  August 28, 2023
• Expenses

  Ideal Food Cost and Waste Management

  Waste management is a critical consideration in the restaurant business, directly affecting the bottom line. It’s essential to have a waste target, and like other key performance indicators, it requires careful monitoring and control. Measuring waste can be approached in several ways. One practical method is to assess what is…

  August 27, 2023
• Expenses

  Packaging and Other COGS

  Packaging and other cost of goods sold (COGS) items play a vital role in the restaurant business and should be managed with careful consideration. These items include to-go cups, napkins, boxes, bags, and other packaging materials directly related to the sale of food products. It’s essential to differentiate these from…

  August 26, 2023
• Expenses

  Occupancy Expenses

  Occupancy costs are a vital consideration in the restaurant business, encompassing everything from rent to taxes, insurance, maintenance, and common area maintenance (CAM). These costs can have a substantial impact on the bottom line, so understanding and managing them effectively is essential for profitability. A great location paired with a…

  August 24, 2023
• Expenses

  Repairs & Maintenance: Proactive Upkeep

  Repairs and maintenance are crucial aspects of running a restaurant that directly contribute to maximizing profits. The attention to both building and equipment maintenance can not only prolong the life of valuable assets but also enhance the dining experience for guests. The exterior of a restaurant, including awnings, parking lots,…

  August 23, 2023
• Expenses

  What are Labor Expenses?

  In the dynamic world of restaurant operations, labor expenses are one of the most significant and complex costs. These expenses can be broadly categorized into several key areas that we will explore in detail: associate or crew labor, which encompasses the frontline staff working directly with customers; management labor, including…

  July 29, 2023
• Expenses

  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,…

  June 25, 2023
• Expenses

  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…

  June 23, 2023