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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.



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