Welcome to Restaurant Bottom Line. Whether you’re an independent operator, a franchisee, or a multi-unit manager, this site is built around one goal: helping you understand the numbers that drive restaurant profitability.
Not sure where to begin? Here’s a suggested reading path:
Step 1: Understand the Foundation
- What is “The Model”? — The financial framework every restaurant runs on
- Sales = Customer Traffic × Price per Customer — The simplest equation in the business
- Introduction: The Imperative of Financial Management — Why most restaurants fail financially
Step 2: Know Your Customer
- The Core Customer: The Heart of Your Restaurant’s Financial Success
- Guest Frequency Composition — The 60/20/20 breakdown that defines your revenue
- Increasing Frequency: A Pathway to Profit Growth
Step 3: Control Your Costs
- Ideal vs. Actual Food Cost: How Waste Is Quietly Killing Your Margins
- Sales Per Labor Hour (SPLH): The One Labor Metric You Need
- Fixed vs. Variable Expenses
Step 4: Grow Sales Strategically
- Optimizing Menu Mix for Enhanced Profitability
- Pricing Models: Finding the Sweet Spot
- Discounting Strategies: Balancing Profitability with Customer Value
New content is added regularly. Learn more about the author here.
PROTECTING THE BOTTOM LINE 