Category: The Model
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Restaurant KPIs: The 7 Numbers Every Operator Should Track Weekly
Running a restaurant without tracking KPIs is like driving at night with the headlights off. You might stay on the road for a while, but eventually you hit something you did not see coming. The operators who consistently protect their margins are the ones who look at the same short…
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How to Create a Restaurant Budget (And Actually Use It)
Every restaurant has a budget. Most of them are useless. They get built in January, filed in a drawer, and never compared to what actually happened. The operator who closes out April with food cost three points above plan had a budget — they just never used it as a…
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How to Read a Restaurant P&L Statement
How to read a restaurant P&L statement: the running order from net sales to net profit, what each section should be as a percentage of sales, and the benchmarks to hold them to.
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Why Is My Restaurant Losing Money?
Why is my restaurant losing money? The five most common reasons — high prime cost, below break-even, heavy occupancy, cash timing, and no tracking — and how to diagnose yours.
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What Is a Good Profit Margin for a Restaurant?
What is a good profit margin for a restaurant? Average net margins by concept, why they are so thin, the numbers that drive them, and how to improve yours.
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Restaurant KPIs: The 12 Numbers Every Operator Should Track Weekly
The 12 restaurant KPIs that actually predict whether a location survives — sales, cost, profitability, and cash metrics from a former chain CFO.
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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…
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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…
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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.
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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.