Restaurant Financials

franchising advantage and disadvantages

When you open up your business, will you open as an independent company or a franchise? Buying a franchise restaurant is a great idea for some, but non-franchise restaurants, or independent options, provides its own benefits.

Read moreIndependent Ownership vs Franchise Restaurant

restaurant income statements

Financial red alerts can quickly lead to closure and bankruptcy. The restaurant industry is one where even the slightest red alert going unresolved can lead to disaster. Restaurant profit margins are often very tight, so it can be difficult to overcome some of the financial issues if they persist too long.

Read moreFinancial Mistakes Your Restaurant Should Avoid

Restaurant food waste can quickly lead to inflated food costs. If a chef has made a special stew on Tuesday and there is a lot of leftovers, discarding this food, while it's still good, will lead to restaurant waste.

You're throwing money away if you're not trying to get profit from it.

Read moreRestaurant Food Waste Management Tips: Turn Your Leftovers Into Profit

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The catering industry is worth $52.3 billion, and 64% of that goes to a restaurant catering. People are now spending more money on restaurants than groceries, so that figure will only increase in the coming years.

If you haven’t done so already, now is the time to add catering to your restaurant’s list of services.

Read moreHow to Enter the Catering Industry if You Have a Restaurant

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Some restaurant owners don’t know how to control the cost of food properly. They put prices on entrees and appetizers, don’t track profit margins correctly and have no clue about the whole food cost control thing.

But wholesale prices are rising. Tariffs are also hitting some foods, especially avocados, very hard. If you don’t have controlled spoilage measures in place, it’s time to start implementing some.

Read moreFood Costs In Restaurants: Control Methods That Work Every Time

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It may not be the most exciting part of the restaurant planning process, but it’s a vital one: insurance. Every restaurant needs insurance, and this is one area you do not want to skimp on.

Restaurant insurance will protect your business from a wide range of issues, including broken equipment and liability lawsuits. But what type of insurance will you need? How much will it cost? How can you compare insurance companies?

Read moreHow to Choose the Restaurant Insurance Coverage

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Restaurants may be in every city, but unless you've been in the business, you probably overestimate how profitable a restaurant could be. Sure, a restaurant may be packed, but that doesn't mean that they're making money.

In fact, there are a lot of myths about owning a restaurant, average restaurant profit and the percentage of restaurants that fail. Which of them can easily be debunked?

Read moreRestaurant Profitability: 10 Myths Debunked

How to control food cost

Cutting costs is essential for every business, and while costs can be cut in the form of workers, it can also be cut in material costs. Restaurant food costs can be cut, and in some cases, you may be able to save 10% or more on your food costs.

There are many ways to cut costs, too.

Read moreHow to Cut Your Restaurant's Food Cost by 10%

Restaurant Upselling Tips

If a restaurant wants to increase profitability, one of the best methods is incorporating upselling techniques into your marketing strategy. But upselling in restaurants is a bit different than with other businesses, where an upsell can be a warranty, extended support or a higher tier of service for a discounted price.

Read moreRestaurant Upselling Tips That Will Maximize Your Profits

Financial Rules of Thumb for a Restaurant

Every restaurant is unique, and there are no financial rules set in stone on what your restaurant needs to follow. But financial rules of thumb can better help a restaurant manage their finances, pay their bills and remain profitable.

Conducting a restaurant financial analysis is recommended if you have several months or years of data.

Read moreFinancial Rules of Thumb for a Restaurant

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