Your restaurant financials are the thermometer of your restaurant’s success.
“The restaurant business is about people and food and the cold hard reality of facts, figures and finances,” ~ Jim Laube, restaurant industry expert (and owner of RestaurantOwner.com)
Here’s an important concept: Restaurateurs don’t succeed in the long run by skimming cash, paying under the table, or otherwise operating unethically. I’m willing to bet that’s not you, but many of our friendly competitors do business exactly as such. I don’t.
I think integrity matters as one more demonstration of personal and professional leadership.
Law #3 Financials: with integrity and diligence, financials and products are tracked, monitored, and adjusted to assure financial health, fitness, and profitability.
We all know what gets measured gets managed. I say what gets measured, AND reported, gets managed even better. In other words, restaurant financials matter.
If we intend to be successful restaurateurs, a firm foundation of well managed restaurant financials must be a key focus of our restaurant fitness program. Financial reporting provides the true fundamental measurement of restaurant health.
Restaurant Financials: Three Basic Reports:
Using the three most common forms of restaurant financial reporting, you can quickly identify a healthy restaurant, or diagnose with tools and information to treat an unhealthy restaurant. The basics are: the profit and loss statement (P&L), the balance sheet, and the cash flow statement.
Look, managing restaurant financials is not brain surgery
Managing restaurant financials does require a specific set of skills and precise thinking. If you’re not into that, hire a qualified CPA so you can focus on other aspects of your business such as developing your leadership, operations, products/services, and marketing.
Most independent restaurateurs aren’t financial experts.
In fact, restaurateurs who are experts at operations and financials consistently outperform others without the the same skill set. Are you an expert at both? Neither am I!
Hire the expertise you need, understand what you need to know and leverage both to success.
To your numbers! To restaurant success!