Category: The Model
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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 do not…
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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…
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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.
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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.
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Restaurant Cash Flow: Why Profitable Restaurants Still Run Out of Money
A profitable restaurant can still run out of cash. Here is why profit and cash diverge, how to read a cash flow statement, and how to build a simple 13-week forecast.
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Menu Engineering: Which Items Are Stars, Plowhorses, Puzzles, and Dogs?
Menu engineering uses margin and volume data to optimize profitability. Identify your stars, dogs, and opportunities and adjust pricing or the menu accordingly.