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Posts tagged [budget management]

Budget management: how to calculate the operating costs of your restaurant

Budget management: how to calculate the operating costs of your restaurant

Regardless of your initial investment, your restaurant will only deliver return on investment if you start out with a solid income stream and practice effective budget management. This means having an operating budget which details projected costs and sales of all sections of your restaurant, these being food and liquor, labour as well as overhead. Your expenditure on food and liquor should be between 30% and 40% of sales, while labour will be 25% and overhead averages 25% (including 8% for rent.) This accounts for between 80% and 90% of sales, with the remaining 10% to 20% being your profit.

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