Finance & Profit
The numbers that decide whether a restaurant survives: food cost, labour cost, prime cost, P&L, cash flow, break-even and menu pricing.
3 topics
KnowledgeFinance & Profit
Restaurant Profit
Restaurant profit is what remains after every cost is paid. Most independent restaurants run on 3–8% net margin, so profit is engineered, not hoped for.
beginner·Read
KnowledgeFinance & Profit
Labour Cost
Labour cost is total staffing cost as a percentage of sales. It is the most controllable line day-to-day, and the fastest place to protect or lose margin.
beginner·Read
KnowledgeFinance & Profit
Prime Cost
Prime cost is food cost plus labour cost — the two biggest controllable expenses combined. It is the single most important number in restaurant finance.
intermediate·Read
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