Restaurant Profit and Loss Statement

 

Restaurant Profit and Loss Statement


  1. Sales Breakdown
  2. Costs breakdown: Cost of goods sold (COGS)
  3. Labor Costs
  4. Operating Costs
  5. Net Profit or Loss

P&L statement also enables you to calculate food cost percentage, gross profit, and net profit or loss. These metrics can be calculated from your sales, COGS, and costs, and they allow you to fully understand your restaurant's financial state.


Restaurant Profit and Loss Template

It's a good idea to create your own restaurant profit and loss template so you can customize it to your unique costs. The table below is an example of what your P&L may look like. You can also use our free downloadable profit and loss statement template by clicking the button below.

Download Interactive Profit and Loss Excel Sheet

Restaurant P&L Table

RESTAURANT PROFIT AND LOSS STATEMENT, JANUARY 2021
SalesWeek of Jan 9Week of Jan 16Week of Jan 23
Food10,5009,00011,000
Wine2,0001,7502,750
Beer1,2501,5001,750
N/A Beverages1,5001,5001,250
Merchandise7501,2501,000
Catering1,0001,0000
TOTAL 17,00016,00017,750
COGS
Food3,5002,7503,750
Wine800600900
Beer400500550
N/A Beverages250250200
Merchandise300500400
Catering5003000
Total COGS 5,7504,9005,800
Gross Profit 11,25011,10011,950
Labor Cost3,7503,5004,000
Operating Costs
Miscellaneous200100150
Rent600600600
Utilities400400400
Property Tax150150150
Waste Removal757575
Insurance125125125
Equipment Repairs5000
Total Operating Cost 1,6001,4501,500
Net Profit/Loss 5,9006,1506,450

Restaurant Calculations for Your P&L Statement

Several restaurant calculations can help you create your profit and loss statement and glean important information from it. Below we go through how to calculate the cost of goods sold, food cost percentage, total gross profit, and net profit.

MetricWhat is it?EquationExample
Cost of Goods Sold (COGS)
  • The cost to your restaurant of the food, beverages, and any other products sold in a given time period
  • Also known as cost of usage or cost of sales
Beginning Inventory + Purchases – Ending Inventory = COGS$4,000 (beginning inventory) + $3,000 (purchased inventory over the week) - $1,250 (ending inventory) = $5,750 (COGS)
  • Repeat for every product individually or add up your inventory at once to get your total COGS.
Food Cost Percentage
  • The portion of sales spent on food
  • Average food cost percentage ranges from 25-35%
Total COGS / Food Sales = Food Cost Percentage$5,750 (Total COGS ) / $17,000 (Food sales) = 33% (Food Cost Percentage)
Gross Profit
  • The profit made from your sales after deducting the cost of goods sold
  • Can be thought of as a preliminary profit because it only takes into account sales and goods
Total Sales – COGS = Gross Profit$17,000 (Food Sales) - $5,750 (Total COGS) = $11,250 (Gross Profit)
Net Profit/Loss
  • The actual profit or loss after all expenses are deducted from sales
  • Also known as the bottom line, net income, or net earnings
Gross Profit – (Labor Cost + Operating Costs) = Net Profit/Loss$11,250 (Gross Profit) -($3,750 +$1,600)(Labor Cost + Operation Cost) = $5,900 (Net Profit)

Comments

Post a Comment

Popular posts from this blog

Classification of Sauces or Types of Sauces

  Classification of Sauces or Types of Sauces Béchamel Sauce or White Sauce: Béchamel   sauce , or white sauce, was a sauce most often served to the rich or to royalty. Made out of a  roux  of flour,  boiled  milk and butter, the creamy-white sauce added a smooth touch to white meats such as chicken, vegetables and eggs. In the years before refrigeration, milk products were rarely used in the  recipes  of the average French housewife. Espagnole Sauce or Brown Sauce: This sauce starts with a dark brown roux, veal stock, beef, bones, vegetables and  seasonings . It is heated, skimmed and reduced. After the initial reduction, tomato sauce is added, and the sauce is further reduced. The entire process is time-consuming, taking hours (if not days) until the sauce is ready. The flavour of Espagnole sauce is concentrated and intense, so it is rarely served directly on food. Veloute Sauce or Blond Sauce: Thickening a white stock with an a...
Read more

The importance of profit and loss statements for independent hotels

Image
  The importance of profit and loss statements for independent hotels 1. Highlighting capital flows Periodic P&L reports are essential for the success of your hotel, as they highlight where your profits are coming from and where your expenses are going. For this reason it is a key tool you want to make data-driven decisions on expenses and revenue at an operational level. 2. Understanding precisely how each department is performing Your P&L statement provides a close scrutiny of departmental performance across your hotel. It also allows you as the hotel manager to analyse this performance compared with your overall and departmental budgets per week, month, quarter or year. The key benefit is that it provides you with insights to identify financial performance weaknesses and strengths. You can then act accordingly to make improvements, such as through cutting hotel costs, enhancing underperforming areas, or investing in new revenue growth streams. The P&L is of course st...
Read more

18 Types of Service / Classification of F&B Service

  18 Types of Service / Classification of F&B Service   18 Types of Service / Classification of F&B Service Different Types of Food and Beverage Services in Hotels | Restaurants There are many different types of food and beverage service types or procedures, but the major category of the food service is  1)  Plate Service,  2)  Cart Service,  3)  Plater Service,  4)  Buffet Service and  5)  Family style service. Below is the list of different type of food and beverage service followed by hotel, resorts, restaurants, fast food establishments etc. 1. Table Service / What is a Table service? Table service is considered as a border category of service style which consists of English Service, American Service, Pre plated Service Etc. In this type of f&B service, the guest is seated at the table with laid cover and orders from the menu. The guest has to be greeted with an eye c...
Read more