P&L / FINANCIAL ASSESSMENT
Know where you are, plan where you want to be
A Profit and Loss Statement is one of the most important financial tools that a restaurant owner has to evaluate their operation in detail. Virtually every action and decision that take place in a restaurant is eventually reflected on the P&L.
While knowing the numbers on your P&L is important, the real value is understanding the actions and decisions that caused those numbers to be what they are. When the numbers are analysed and tied back to specific actions in the restaurant, operational changes can be made and better results can be achieved.
Most restaurant owners go into business because they love restaurants. This means food prep, menu creation, and good service. Math and accounting skills never seem to be a factor, but they are important when understanding the health of the business. The most basic document that provides a picture of the restaurants health is the P&L Statement.
A little bit of analysis on your P&L can give you great insight into improving your numbers. Look at the different categories and see how they have changed over time and in relation to one another. Have your COGS gone up? Sales declined? Operating expenses jumped? Maybe you bought a second location and expanded too soon, maybe it’s time to look at renegotiating with your vendors or moving locations. Or maybe it’s time to adjust the menu. If items are selling seasonally but stocked year-round you could be losing a lot to inventory waste. Looking at your P&L should give you the answers you need.
To find out how Kode can help you manage your P&L, other reports and give you a free assessment of your business, get in touch with us, no obligation.