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What Every Operator Should Know About Managing the Financial Side of their Restaurant

Target Audience: Independent restaurant owners and managers

Everyone knows that operating a restaurant is about serving food and taking care of customers, but a restaurant is also a business. Success in this business is not just measured in terms of smiling, satisfied customers but also in the cold, hard realities of facts, figures and finances. There is a big difference between running a restaurant and managing a business.

This program gives restaurant owners and managers practical, common-sense guidance that's essential in managing the financial or business side of their restaurant. In an understandable, jargon-free approach, you'll learn practical, easy-to-implement systems and techniques. You'll get the knowledge you need to effectively manage this critical aspect of creating and sustaining a financially viable business.

Part 1: Introduction
Time: 23 minutes

  • The difference between "running a restaurant" and "building a business"
  • The best way to quickly and accurately assess the profit potential of any restaurant
  • The critical "check points" on any restaurant's P&L and what they reveal
  • How to size up your restaurant's financial performance
  • How to use a "restaurant industry standard" format to present and report your financial information
  • How to evaluate and compare your prime cost, occupancy expenses and profit margins to other independent restaurants

Click Here to View

Part 2: Getting the Most Out of Your Financial Information
Time: 25 minutes

  • Practical ways to get more value out of your P&L
  • Understanding what your accountant does and how to keep them on their toes
  • The benefits of using the National Restaurant Association's "Uniform System of Accounts for Restaurants"
  • The best way to format restaurant financial projects in loan and financial packages
  • How to reduce the time it takes to conduct physical inventories
  • Why many successful restaurants inventory more than just food and beverages
  • Why many restaurants use a 28 day accounting period, not a monthly one

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Part 3: Cash Flow Competence
Time: 24 minutes

  • How to understand and read your balance sheet
  • What your profit and loss statement doesn't tell you about your business that you need to know
  • The difference between profit and cash
  • Understanding the important relationships between your P&L, balance sheet and check book
  • Why even "profitable" restaurants can and often do have cash flow problems
  • How to anticipate cash shortfalls and not be "surprised"
  • Effective and creative ways to prevent cash flow challenges from becoming major problems

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Part 4: Key Industry Averages: How Does Your Restaurant Stack Up?
Time: 26 minutes

  • How a key balance sheet ratio, the current ratio, can be very different for restaurants than other businesses & why you may need to explain this to your banker.
  • Industry guidelines to quickly identify excess food, liquor, beer and wine in inventory.
  • How to use the "Sales to Investment" ratio to evaluate expansion decisions.
  • The economic differences between "leasing" a facility and "purchasing" the land & building.
  • A systematic way to estimate sales volume in a proposed restaurant.
  • Why restaurants with high food costs can still be extremely profitable.
  • Industry averages for liquor, beer, wine, paper and payroll costs.

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Part 5: Financial Best Practices
Time: 28 minutes

  • Financial and profit enhancing insights used by the most profitable restaurateurs in the business.
  • How to improve your cash management skills and reduce the likelihood you'll get caught scrambling for funds when mandatory tax and other payments are due.
  • For financial information to be useful it's got to be current. Simple ideas for getting your financial statements in your hands quicker.
  • An easy method for getting your cost of sales and labor costs each week. With this report your prime costs will go down - GUARANTEED.
  • How sharp operators use the break-even approach for staying on top of their restaurants' profit performance.
  • A quick, uncomplicated way to calculate the break-even and profitability of any restaurant.

Click Here to View

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Tavern At The Village Green
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Printer's Alley Bar & Grill
Memphis, TN

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Pearle Restaurant & Oyster Bar
Dublin, NH

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Matters of Taste Bakery Market Café
Honolulu, HI

"So far, we’ve revised our accounting system and introduced the prime cost concept. My prime costs are dropping because of focusing on both inventory and labor together. This will improve my contribution margin by $120,000!"

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Paddy's Brewpub & Rosie's Restaurant
Kentville, Nova Scotia

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Hizzoner's Uptown Deli
Bellingham, WA

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Lefty's Restaurant
Parksville, B.C.

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Pappa's Bossier
Bossier City, LA

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Route Restaurants
Burlington, CO

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StageCoach Station
Miles City, MT

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Mission Bay Foods
San Francisco, CA

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The Bisbee Grille
Bisbee, AZ