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Home | Business & Financial
 
Business & Financial
Business & Financial

There are multiple facets to the "Business & Financial" section. First of all, your restaurant isn't just a restaurant, it's also a business. It's very possible to have a great restaurant that's a lousy business. One of the reasons independents, in particular, tend to have challenges in this area is that many people who own an independent restaurant may know a lot about running a restaurant but haven't developed the skills needed to build a successful business.

Think about the functions & skills involved in running a restaurant - management of the dining room & kitchen, menu planning & recipe development, purchasing, food preparation & delivery, customer service, hiring, staff training & development, facilities management, sanitation, etc. Now, consider the functions and skills involved in managing a business, any business - interpreting P&Ls & balance sheets, cash & financial management, business development, lender & investor relations, strategic planning & marketing, etc. It's easy to see that the knowledge and skills that might lead to the creation of a fabulous restaurant are quite different from those needed to manage and grow a successful business.

In this section, you'll get proven insights and tools to help you better understand and manage the business side of your restaurant. Our business development resources will help you create your own unique operating system. With an operating system in place, a restaurant becomes better organized, customers get more consistency, employees enjoy their jobs more and the restaurant is able to perform in a more predetermined, predictable fashion "without the owner having to be there all the time." Having a well-thought out and functioning operating system is one of the keys to creating a truly successful (and more valuable) business "and" a better life-style.

Another importing part of managing the business side of your restaurant is understanding "the numbers." Everyone knows the restaurant business is a "people" business, but it's also a "numbers" business. Success can't just be measured in terms of smiling, satisfied customers but also in the cold, hard realities of facts, figures and finances.

Harold Geneen, former Chairman of IT&T said, "The difference between well-managed companies and not-so-well managed companies is the degree of attention they pay to the numbers." While the numbers are certainly critical in any business, they are probably even more so in operating a restaurant. Dealing with perishable products, lots of employees and razor thin profit margins are just a few of the factors which leaves little room for error and the need to know where you stand, from a financial perspective, quickly and often. Only your numbers can tell you if your restaurant is performing the way it should be or not.

Our financial programs, reports and tools are easy to grasp and implement. You need the benefit of having a financial approach and perspective to your restaurant. This section will help you better understand the business and financial dynamics of your restaurant so you manage it like the business it is.

Multi-Unit Operators Mastermind Conference
Multi-Unit Operators Mastermind Conference In a recent discussion forum posting, one of our multi-unit operators inquired as to how other multi-unit operators structure and manage the home office and the flow of information from the unit to the home office . . . more >>
DOWNLOAD: Menu & Recipe Cost Spreadsheet Template
DOWNLOAD: Menu & Recipe Cost Spreadsheet Template Knowing what each of your menu items costs is one of the most basic yet overlooked aspects of running a profitable restaurant. This comprehensive spreadsheet template will give you an easy-to-use tool to calculate and maintain the current cost of your menu and recipes. . . . more >>
ONLINE SEMINAR: Restaurant Numbers - Understanding & Managing the Financial Side of Your Restaurant
ONLINE SEMINAR: Restaurant Numbers - Understanding & Managing the Financial Side of Your Restaurant Successful operators understand and know how to manage "the numbers" side of their business too. In Part 1 of our 5 part series you'll learn how to systematically and accurately assess the profit potential of any restaurant. . . . more >>
DOWNLOAD: Closing Your Restaurant Business Checklist
DOWNLOAD: Closing Your Restaurant Business Checklist Unfortunately, some restaurants don't make it and at some point closing the doors may seem like the only option. Use this checklist to help you create a closing plan for the many tasks you'll encounter such as paying employees, filing your last tax reports, dealing with unpaid vendors, closing bank and credit card accounts, and evaluating bankruptcy options. . . . more >>
WEBINAR: RO.com's Prime Cost Wizard
WEBINAR: RO.com's Prime Cost Wizard The Prime Cost Wizard is a web-based financial tool that combines several of our most popular resources (Weekly Prime Cost Worksheet, Daily Sales Report Templates, Daily Sales Plus Labor Summary) into a single, simple-to-use program that integrates with Quickbooks and Peachtree accounting systems. . . . more >>
ONLINE SEMINAR: Key Industry Averages-How Does Your Restaurant Stack Up?
ONLINE SEMINAR: Key Industry Averages-How Does Your Restaurant Stack Up? How does your restaurant's financial performance stack up to the industry? Get industry averages and rules of thumb to evaluate your sales, food cost, beverage costs, mangement and hourly labor cost, employee benefits, operating expenses, rent and occupancy costs, inventory levels and much more. . . . more >>
ONLINE SEMINAR: Getting the Most Out of Your Financial Information
ONLINE SEMINAR: Getting the Most Out of Your Financial Information The benefits of using the National Restaurant Association's "Uniform System of Accounts;" the best way to format your financial projections in loan packages; why you should be using a 28 day accounting period; reduce time to take a physical inventory. . . . more >>
Why You Must NEVER, EVER Let Your Bookkeeper Handle Cash
Why You Must NEVER, EVER Let Your Bookkeeper Handle Cash All too many restaurant operators have lost small and even large fortunes to a dishonest bookkeeper. Here's an example of what can (and does) happen when owners lose sight of following basic internal controls associated with this important function. . . . more >>
Restaurant Rules of Thumb: How Does Your Operation Measure Up to Industry Averages & Standards?
by Jim Laube
A review of several key restaurant industry startup, financial & operational metrics that have proven to be reliable measurements over time. A handy guide for operators planning changes or assessing how they compare to industry averages & standards. . . . more >>
10 Restaurant Financial Red Flags
by John Nessel
10 Restaurant Financial Red Flags Financial problems don't just suddenly happen. There are signs that can alert operators to potential problems ahead. Recognizing these ten financial "Red Flags" in your restaurant can point to where the current problems are and where future problems are likely to emerge. . . . more >>
10 Common Restaurant Startup Mistakes (and how to avoid them)
10 Common Restaurant Startup Mistakes (and how to avoid them) In any new business venture good decision-making is vital. Opening a new restaurant requires so many decisions that it's not hard to make some bloopers along the way. The key is not totally missing the mark on the really important issues that can make or break your chances for success. Here are 10 of the most common & potentially fatal missteps new owners make and what you can do to avoid making them. . . . more >>
ONLINE SEMINAR: Cash Flow Competence
ONLINE SEMINAR: Cash Flow Competence Restaurant Numbers: Part 3 features understanding your balance sheet; what your P&L isn't telling you (that you need to know); how to anticipate cash shortfalls and not get "surprised"; creative ways to keep cash flow challenges from becoming major problems. . . . more >>

The Top 10 Myths of Restaurant Profitability
by Jim Laube
The Top 10 Myths of Restaurant Profitability Conventional wisdom in the restaurant business is often anything but wise or good for your bottom line. Here are 10 so-called undeniable restaurant truths that could be costing you big money. . . . more >>
How to Determine If a Prime Vendor Program Is Right for Your Restaurant
By Lee Plotkin
How to Determine If a Prime Vendor Program Is Right for Your Restaurant Setting up a purchasing program that's a good fit for your concept is important in today's competitive marketplace, especially as costs continue to soar. This article examines strategies to effectively reduce costs without diminishing quality and service. . . . more >>
DOWNLOAD: Restaurant Business Plan Template
DOWNLOAD: Restaurant Business Plan Template A professional, well-conceived restaurant business plan is absolutely essential for an independent restaurant venture to obtain funding and have any real chance for success. Our business plan templates will provide you with the tools to develop & communicate your plan in a professional, compelling format that will enhance your chances of securing capital and making your plan a reality. . . . more >>
DOWNLOAD: Catering/Event Worksheet
DOWNLOAD: Catering/Event Worksheet Catering and other special events can be a very profitable source of additional business especially when operators accurately estimate their costs and set prices accordingly. The Catering/Event Worksheet is a tool to help you quickly estimate the food, beverage, paper, equipment and staffing costs for a particular event. . . . more >>
Why Restaurants Fail
by Howard Riell
Why Restaurants Fail The reasons restaurants fail are many and varied and, in some cases, not the least bit obvious. It was nearly seven years ago that Dr. H.G. Parsa decided he wanted to know why and spearheaded a landmark study to seek the answers. Seven years after that study was released, we talk to Parsa about the study, its "back story," and what he's learned since. . . . more >>
WEBINAR: A Sneak Preview of the NEW Uniform System of Accounts for Restaurants
WEBINAR: A Sneak Preview of the NEW Uniform System of Accounts for Restaurants RestaurantOwner.com and RS&G are updating the NRA's largest selling book, the Uniform System of Accounts for Restaurants. Get a first hand look at the changes in the new edition and send us your questions, comments and feedback for consideration in the final edition. . . . more >>
WEBINAR: How to Renegotiate Your Restaurant's Lease
As the economy struggles so does the restaurant industry. To find relief, many operators are seeking assistance from a traditionally unlikely source...their landlords. Learn how to determine if asking for a rent concession makes sense for you and if so, how to go about it in a way that improves your chances of success. Our guest is real estate attorney, Larry Green. . . . more >>
DOWNLOAD: Daily Voids Log Sheet
DOWNLOAD: Daily Voids Log Sheet Theft prevention 101 - never let your bartenders, servers or cashiers void items after they have been rung up. It's ok to give them the ability to void (item correct) an item "while" they are in the process of ringing the check; however, once the check has been recorded (saved or printed) then only management should be allowed to perform a void function. . . . more >>
DOWNLOAD: Food Cost Yield Calculator
DOWNLOAD: Food Cost Yield Calculator The Food Cost Yield Calculator is a flexible Microsoft Excel? set of spreadsheets designed to aid restaurant owners, chefs, and managers in determining the true cost of the raw products used to produce menu items. . . . more >>
Why Prime Cost Is the Most Important Number (That Should Be) on Your P&L
by Jim Laube
Why Prime Cost Is the Most Important Number (That Should Be) on Your P&L Prime cost (food, beverage & labor) consumes in excess of 60% of sales in most restaurants. They are your largest and most volatile costs. Without good Prime Cost controls even high volume restaurants can have profitability problems. Learn what your Prime Cost should run and how to keep excess Prime Cost from choking your profit. . . . more >>
DOWNLOAD: Restaurant Startup & Feasibility Model (Tableservice version)
DOWNLOAD: Restaurant Startup & Feasibility Model (Tableservice version) Whether you're planning to start your first restaurant or add another location, analyzing the financial feasibility of the project is essential. These series of linked spreadsheets have been refined over several years on a wide variety and number of actual restaurant ventures and formal restaurant business plans. . . . more >>
How to Turn Your Good Restaurant into a Great Business
by Jim Laube, RestaurantOwner.com
How to Turn Your Good Restaurant into a Great Business Many people who open a restaurant don't fully understand the role they should play as an owner. They're convinced that managing or performing the operational functions in a restaurant is all that's needed to create a profitable operation and it's a fatal flaw behind many underperforming or failed restaurants. . . . more >>
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