Know cost, know profit
If having a restaurant is your real dream today, just tasty food, good atmosphere, great location with many customers at first may not be enough to guarantee your success because cost is a major variable to make profit for the restaurant in long term. Just try to find a way to check your restaurant financial health with easy tips.
First, what we should know is that managing a restaurant with no inclusive understanding and lack of discipline may lead to money misuse such as spending for personal happiness with no benefit to the business, or spending money to expand the business although expenditure is not stable. Allocating budget in management properly will respond the success of the restaurant sustainably.
Let’s start with the fact that every restaurant should perceive important of making income-spending account to help analyzing business condition correctly as all income is not profit but it includes cost of products, operating cost and other minor expenses. One thing that the restaurant owners should know and understand well is how to calculate food cost including calculating actual food cost, finding cost of food roughly and finding possible highest cost of food. Cost calculation will enable us to know how much potential each dish has in making a profit and whether it is worth the time and resource for cooking that dish.
