The anatomy of a successful restaurant has many factors. Food and labor costs are among the top profit busters. Restaurant profit optimization, however, can turn any restaurant into a successful one. Become a savvy restaurateur with up to 19 percent profits.
Do you know what a successful restaurant looks like? The anatomy of a successful restaurant will focus primarily on where every dollar is spent, and how to churn out as much profit for each dollar.
Knowing where exactly your money goes is vital to being successful. But placing your money in the right areas can be challenging. That is, until now.
Restaurant Controllables vs. Non-Controllables
Running a successful restaurant comes down to two major factors, expenses associated with …show more content…
For instance, your restaurant may make $2,000 on Monday, but $8,000 on Thursday. But you have six people staffed on both those days, meaning it is time to trim the fat a bit.
To hit the 25 percent profitability mark, you can only spend $500 on labor for Monday. If wages are $13 per hour, you can only schedule 38 hours for that day. You can do this for each day of the week and schedule staff accordingly.
Optimizing Restaurant Food Spend
Optimizing food spend is slightly more complex, but easy once you do it a few times. Calculate food spend for one period plus the next period and divide it by your sales over each period. You use two consecutive periods, because of inventory overflow.
To hit the 30 percent profitability mark you’ll need to identify where food is going. Your staff could be stealing it, or you may not be pricing your dishes correctly. If food theft is a concern, you only let everyone know you are measuring everything precisely, and that will nix that.
To know if you are pricing your dishes correctly, you’ll need to do a little math on ingredients used. For instance, weigh out the ingredients at cost for your top three dishes, and divide that number by
Do you know what a successful restaurant looks like? The anatomy of a successful restaurant will focus primarily on where every dollar is spent, and how to churn out as much profit for each dollar.
Knowing where exactly your money goes is vital to being successful. But placing your money in the right areas can be challenging. That is, until now.
Restaurant Controllables vs. Non-Controllables
Running a successful restaurant comes down to two major factors, expenses associated with …show more content…
For instance, your restaurant may make $2,000 on Monday, but $8,000 on Thursday. But you have six people staffed on both those days, meaning it is time to trim the fat a bit.
To hit the 25 percent profitability mark, you can only spend $500 on labor for Monday. If wages are $13 per hour, you can only schedule 38 hours for that day. You can do this for each day of the week and schedule staff accordingly.
Optimizing Restaurant Food Spend
Optimizing food spend is slightly more complex, but easy once you do it a few times. Calculate food spend for one period plus the next period and divide it by your sales over each period. You use two consecutive periods, because of inventory overflow.
To hit the 30 percent profitability mark you’ll need to identify where food is going. Your staff could be stealing it, or you may not be pricing your dishes correctly. If food theft is a concern, you only let everyone know you are measuring everything precisely, and that will nix that.
To know if you are pricing your dishes correctly, you’ll need to do a little math on ingredients used. For instance, weigh out the ingredients at cost for your top three dishes, and divide that number by