ONLINE SEMINAR SERIES: Restaurant Numbers
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
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
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
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.
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.