Why the Difference Between Cash Flow vs. Profit Matters for Restaurants
You just closed the books for the month, the P&L shows a healthy profit, and yet, your bank account is running on fumes. How can that be? For restaurant operators, the terms cash flow vs. profit often get used interchangeably, but they measure two very different aspects of your business. Understanding this distinction is not […]
Restaurant Metrics: Why Recipe and Food Costing Both Matter
As a restaurant operator, understanding the financial nuances of your operation is a crucial part of your ongoing success. Although some people may use the terms “recipe costing” and “food costing” interchangeably, they refer to very different processes with distinct roles in helping you control costs and analyze profitability. When costing a dish, it’s essential […]
How to Track Machinery and Equipment Depreciation in Your Restaurant
That $15,000 commercial pizza oven you bought three years ago isn’t worth $15,000 anymore—and that’s actually a good thing for your taxes. Restaurant equipment loses value over time through normal wear and tear, technological obsolescence, and simple aging. But instead of treating this as a negative, smart operators can use machinery and equipment depreciation as […]
How to Control Your Restaurant Payroll Percentage?
Labor is one of the most significant expenses in the restaurant business. Yet, without a clear understanding of your payroll percentage, it’s nearly impossible to know whether you’re overstaffed, understaffed, or operating at peak efficiency. Payroll percentage isn’t just a number — it’s a vital health indicator for your restaurant, revealing how effectively you’re balancing […]
Prime Costs: The Key to Unlocking Your Restaurant’s Profitability
The most successful restaurants coach their management teams to keep a finger on the pulse of finances by regularly revisiting the question, “What is prime cost?” Many restaurants calculate prime cost and leave it to ride for far too long — weeks or even quarterly. However, you need to understand some fundamentals to truly manage […]
How Much Should You Charge? Determining Restaurant Pricing Strategy
Most restaurant operators approach pricing with a simple cost-plus formula: calculate food costs, then multiply by three. That approach might keep the lights on, but it’s leaving money on the table. The restaurants thriving in today’s challenging environment know that restaurant pricing strategy is a powerful lever that can drive profitability and shape customer perception. […]
Restaurant Equipment Leasing vs. Buying: What Restaurants Should Know
When it comes to building or growing a restaurant, few decisions are as financially significant as how you acquire your kitchen equipment. Whether you’re opening your first unit, renovating an aging location, or expanding into a multi-unit operation, choosing between restaurant equipment leasing or purchasing is more than a budgeting call — it’s a strategic […]
How to Choose the Best Restaurant Accounting Software
Choosing the right restaurant accounting software isn’t just about managing your books — it’s about setting your business up for smarter decisions, smoother operations, and long-term profitability. Generic accounting tools often fall short and can’t support the fast-paced, detail-heavy demands of foodservice operations. From managing fluctuating labor patterns to tracking inventory usage and cost of […]
What Is Restaurant Software? Types, Features, and Why You Need It
Running a restaurant isn’t for the faint of heart — especially with the current litany of industry challenges. Labor costs are through the roof, profit margins keep shrinking, tariffs are increasing uncertainty, and customers want more for less. But savvy operators know that the right restaurant software can turn these obstacles into strategic advantages. In […]
America’s Strange But True Alcohol Laws By State
Running a restaurant involves more than just scheduling and inventory management—you also have to play by some truly bizarre rules when it comes to alcohol. What’s legal in one state could get you fined (or even shut down) in another, and a clear understanding of these alcohol laws by state is even more important for […]