Download a free restaurant profit and loss statement template to gain valuable insight into.How to Read a Restaurant Profit and Loss Statement (Free Income Statement Template)In order to understand how your restaurant can improve, you need to first have a clear sense of how your restaurant is currently performing. How much are you spending on labor? How much does it cost you to create each of your menu items? Which dishes are the best and worst sellers? After considering your controllable costs like payroll and food costs, is there enough money to cover your overhead costs? These are all questions that restaurant owners need to be able to answer if they hope to optimize their business and improve their bottom line. A restaurant income statement, also known as a profit and loss (P& L) statement, is a financial document that helps restaurant owners understand their net profit or loss during a given period of time and, more importantly, the areas that are contributing to or hurting the business. Download this free income statement template and follow along. This article will introduce the key metrics that make up a restaurant income statement and show you how to analyze it to gain valuable and actionable insights. Create a P& L Statement. Select a time period. The first step in creating a restaurant profit and loss statement is selecting the timeframe to analyze. You can create P& L statements weekly, monthly, quarterly, or annually. It is a good idea to generate these statements regularly so you always have a clear sense of how various aspects of your business are affecting costs and sales. Record your sales for the selected time period. The first section of an income statement is the sales section. The sales section shows you how much money your restaurant brought in during the given time period. In the P& L template, you'll see sections for food, wine, beer, liquor, and soft drink sales. You can choose to track sales more specifically by segmenting your food sales into more specific categories or menu groups, or you can simplify your P& L statement by dividing sales into just food and beverage. If you have a POS system that offers sales tracking and reporting, you should be able to easily access detailed sales information for your selected timeframe. If you do not have a POS system, use whatever method is in place for tracking sales. Enter your cost of goods sold (COGS)Cost of goods sold is really just another way of saying the cost of the inventory used to create the food and beverage items on your menu. If you use standardized recipes for all of your food and drink items, it should be fairly easy to calculate your cost of goods sold. For instance, if you sell 1. COGS is $3. 0 (1. For the purposes of your P& L statement, you are calculating the same thing for all of your food and beverage sales. If you're using the free template, the cost of food and beverage sales will automatically calculate the cost- to- sales ratio for each item. Labor. Labor includes all salaried and hourly employees, as well as payroll taxes and employee benefits. You should calculate the amount you spent on each of these labor- related expenses during the time period you selected and enter them individually into the profit and loss statement template. Operating Expenses. Operating expenses are the controllable expenses involved in running your day- to- day operations. This could include things like supplies, repairs and upgrades, marketing and advertising, and music and entertainment. Occupancy Costs. Occupancy expenses are the fixed overhead costs related to things like the rent, real estate, and property insurance. These costs are fixed because you do not have the ability to alter or change them. Depreciation. Depreciation refers to the decreasing value of an asset, in this case the physical restaurant establishment and equipment, over time. Although depreciation is inevitable, it still needs to be accounted for in order to accurately calculate your net profit or loss. Click here for more information about depreciation and for assistance calculating your restaurant's depreciation. Percent of Sales. If you're taking advantage of the free profit and loss template, you'll see the percentage of total sales that is being used to cover labor, occupancy, food and beverage, and operational expenses in Column C. The percentages listed here are an important indication of how your business is performing. According to industry standards, labor, food, and beverage costs should account for the largest percentage of total sales (typically around 3. Every restaurant is different, but if you notice an unusually high amount being allocated to labor, food, and drink, it may be a time to re- evaluate staffing and low- margin menu items. Gross Profit & Gross Profit Margin. Gross profit is calculated by subtracting the total cost of goods sold from total sales. Gross profit is calculated automatically once you enter sales and COGS values into the income statement template. Next to the gross profit dollar amount you should see a percentage, which represents your restaurant. Gross profit margin is calculated by dividing your gross profit by total sales. Pay particular attention to this metric over time, comparing it to your historical data, to understand how fluctuating food and beverage costs are impacting margins. Restaurant Monthly Profit and Loss Statement Template for Excel. The Restaurant Monthly Profit and Loss Template. Restaurant Operations Spreadsheet Library. This comprehensive library of customized Microsoft Excel spreadsheets is. Hotel profit loss statement free download - Restaurant Monthly Profit and Loss Statement Template for Excel, Profit Loss Report Spreadsheet, Excel Income Statement. Gross profit margin is often the metric restaurants rely on when deciding where to set menu prices and portion sizes. Net Profit/Loss The final metric in the income statement template is the metric you likely care the most about: the bottom line. Net profit/loss is a key indicator of how your business performed during a specific period of time. This number will be positive or negative depending on business performance. If this metric is positive, congratulations! Your restaurant is profitable overall. Restaurant Monthly Profit and Loss. Restaurant Monthly Profit and Loss Statement Template for Excel. Restaurant Monthly Profit Restaurant Monthly Profit Loss. Profit and Loss Data Modeling and Analysis with Microsoft PowerPivot in Excel article and the ContosoPnL sample Excel workbook. Downloads on this page include the. Download a FREE monthly income statement template for. The template calculates Net Sales, Gross Profit. All Practical Spreadsheets work with Microsoft Excel. If the number is negative it means that your restaurant. Over an extended period of time, that could mean trouble. Keep a close eye on net profit/loss and compare it to your own historical data to see how your restaurant. It highlights how your restaurant. It simply shows you how your restaurant preformed in the past. Not only does prime cost make up the bulk of a restaurant. Although making minor changes to labor and food costs during a set period of time may not seem significant, every dollar shaved off of prime cost is another dollar that can go towards overhead expenses and profit. Good business relies on data. By regularly creating income statements and tracking prime cost overtime, you will start to recognize trends and areas that need more attention so you can make the appropriate adjustments.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. Archives
December 2016
Categories |