How to Read a Restaurant P&L Statement
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- Опубліковано 15 лип 2024
- Restaurant Owners... A great tool for managing your restaurant is a profit and loss statement but solely depending on it to run your business is not ideal. Watch this video as I show you how to use and read a P&L statement for your restaurant.
To learn more please either watch the video above or click the link below to read the transcript or listen to the podcast on my website.
Also, please leave your questions or comments I will answer them all.
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Please be sure to like this video and leave your comments or questions below as well as share this video with your friends, co-workers and other restaurant owners, managers and operators. I promise to respond to every comment or question!
Thank you,
Ryan Gromfin
The Restaurant Boss
TheRestaurantBoss.com
Thanks for the video , I am a manager in training of a QSR in India and I think you just solved a puzzle of mine which was bothering me for the past 2 yrs. Again thanks a lot and keep posting productive videos.
Thank you. We are so glad to be able to help.
which puzzle was that?
YOU ARE A TRUE LIFE SAVER
Thank you so very much for the compliment!
i really need this one. thank you explaining everything about it .
love it
This is really good help resource
Blessings to you buddy.🙏🏽
Fantastic explanation for restaurant p&l . It’s really helpful and many thanks for you
Really u r great thank u for your wonderful videos
Sir your explanation deserves 1million subscribers. Inshallah you will reach it. Thanks for your wonderful explanation of P&L.
Great stuff. Thank you for sharing. Can you share an example that includes inventory in the P&L?
Thanks for this video
Great explanation
Amazing and simple . I already know p and L but I wanted to refresh my info.. all the best
So glad the video was helpful.
thanks! much obliged
You're awesome Ryan. Thank you !
Thank you!
Thank u so much for sharing ur knowledge.
You're welcome!
Thank you for the information. Please keep doing this.... thank you so much
More to come!
Great job. Very interesting!!! Took copious notes.
Awesome!
ITS REALLY GREAT
thanks boss !!
Very informative
This is great
Good thanks
You have helped me SOOOO much. This is the only thing I'm lacking knowledge in
I am so glad it was helpful!
great . thx
Thanks sir - this video very nice 👍
Thank you!
I like your explanation and I will use in the business I’m building at the moment and I’m interested in the 90 plan ❤
You can grab the 90 day plan inside our TRB Toolkit (totally free):
www.therestaurantboss.com/toolkit
-Dawn, Team TRB
gud one sir..
Excellent video!
Thank you very much!
Amazing content. Thanks Ryan! Now illl be able to make more money
Boom!
Very informative videos
Thank you!
Thank you so much! This is helping me out a lot! I have worked as a AGM for about 3 years and a GM for about a year. I had to move out of state and while job hunting I always get asked about P&L during interviews and I am always caught with my pants down. I would sit in these meeting with all the corporate managers and go over numbers. Heck I would run these numbers every night. But I have no clue how to answer these interview questions.
Glad it's helping!
- Dawn, Team TRB
This was super helpful but I am slow lol imma keep doing more research best explanation yet ❤
Great stuff
Thanks Michael!
Chef, Thank you very much & Highly appreciated 🙏 Best P& L ever 😀
You are very welcome!
Chef, Kindly share with us P&L with Scratch n Formulas, that P& L Formula we use our Restaurant or Business n certainly Link to download.
Eagerly waiting.......
Hi! I do not have a P&L to share because I, quite frankly, do not believe in them. I think your numbers should be in realtime so you have actionable data versus old data that you can't really act on. That's why I created a cost control software platform, clickBACON. Check it out: www.clickBACON.com
This video has been a great help Sir.....thank you so much.....but please kindly answer what ELSE is left in order to get the NET PROFIT then?.........i await your answer
Thank you so much it was amazing,could I ask for something I need the fourth category more clearly because I didn’t get it or you can write it one by one
Thanks boss....
Welcome
very helpful
Thanks!
Thank you so much, all of your video and pieces of information is very helpful on my part, I work in a restaurant for almost 30 years in my native land. As of now, I'm staying here in the US and still waiting for the approval of the required documents to be able to work. I hope it will be approved soon and i get a job to support my family as well as my everyday needs.
You are so welcome! I wish you much success here in the States!
Hi David, can you please help me with this calculation, how do you calculate cover per labour hours knowing that there is managers working with a fix wages that i don't know how many hours they do. I have the cost, I have the covers numbers, the opreating days, and the total hours for the other employee.
Thanks in advance
I NEED THE 90 DAYS PLANNER ALSO THANKS AND GREAT JOB
It's free inside our Restaurant Owners Toolkit! You can get that here:
www.therestaurantboss.com/toolkit
-Dawn, Team TRB
Hi Sir. Respect to you. Can you make some videos too of a FOOD COSTING that includes Vat and Service Charge. Simplified and easy to understand. Thank you
Hi Marko! Thank you for the suggestion. I will add this to my idea file and see if I can fit it into the rotation.
Thanks, good video.I was wondering why workmans comp was in fixed expense and not under labor? Shouldnt that be included in Prime Cost?
You are correct, workmans comp should be in the prime cost. I must have used an older sheet by accident in the video. Thank you for pointing that out to me.
Hey Ryan, still love your videos so much!
I'm a bit lost in terminology/vocabulary here about expenses/costs.
Would you say that? :
Fixed = non-controlable
Variable = controlable
Thanks a lot!
It's the opposite. Fixed are controllable and variable aren't.
good msg
Thank you so much.
Hi Very nice explanation for P & L statement If possible can you make a video for and template for a restaurant from Opening to Closing I mean How many type of Daily report/ Check list a restaurant manager must do to run smooth Restaurant Business
I will do that, great idea...
THANKS Looking forward
Hey Ryan, absolutely great video on a really important yet sometimes confusing subject. How do you account for discounts and comps given to customers, staff and food consumed by the owners themselves. Do you expense it in marketing, do you deduct them from gross sales. How do you account for the food cost, or a percentage of it, which did not turn into sale on a P&L? Can you please do video on it? Thank you!
Great idea, we can do a video on accounting for discounts for sure.
Thank you for the good videos!
Do you have any videos on consulting or direct me to some good videos?
Thank you for your help.
What do you mean videos on consulting, are you looking to become a consultant?
Yes i would like to get into restaurant consulting
Would the same concept be applied to the manufacturing market? Great video!
Yes, Prime cost actually comes from factories and manufacturing.
I have doubt about the gross margin at the end of your P&L should be the net profit , The gross margin is total sales minus the COGS ?
Under labor would you add a separate line for overtime? Or would you just add it into LABOR Cost line? Thanks New subscriber here.
You could if you want to, but I don't believe in accounting for things in an accounting program that can be found easily in the POS. The P&L is just a tool to help with financials, it is NOT a KPI (key performance indicator) if you are having overtime issues, just track that through your POS.
There is also theoretical and actual food cost, if you are trying to pinpoint your profit and loss. Are your disposables in line with sales? Do you have an employee who is using napkins to clean when they should be using something from the janitorial column? How well are you controlling the to go boxes. You might have servers who are giving out one to many to go boxes several times on their shift and on every shift they work. What about the cooks. How much food waste is there? Is there someone in the kitchen who is marking down food waste. Such as a hamburger bun dropped on the floor, a steak miscooked, a potato that was a little too burned, or that hungry kitchen employee who ate a piece of bacon or a slice of cheese. Each one of these employee's is costing you a few pennies and a few dollars per shift. What about portion control? IT could go on and on.
agreed 💯💯
Never gonna be able to account for EVERYTHING. Especially with 10 or more employees. Impossible in my experience.
Hello are P&L's basically a report of how your business is doing and if you need to make adjustments to create more profit in any given area.
Hello Rayn, thanks for the video plz how can i get the sample P&L that you was explaining.
Thanks in advance and god bless you
Hey Romeo! I think I answered your question in an email. Thanks for asking! -Dawn, Team TRB
@@Therestaurantboss yes thanks a lot
Thank you for the video.
Can you kindly tell me how to create a proper budget and a focast to a restaurant which is in a hotel..
Do you have any tutorial for that?
I would suggest watching my Playlist on cost control. Those principles help you set a budget.
@@Therestaurantboss thank you.
hi, came accross this video in my search for P&L, pls is there an editable template you know i could use? Or will i have to create an excel to look like the sample one in the video above?
Hey Kevin! I ditched the P&L template years ago and created my software package that tracks those expenses in real time. I found that I wasn't getting the actionable data w/ a P&L and needed something in real time. So, I created clickBACON. Check it out > clickBacon.com
Also, go check out our new Toolkit! It's filled with countless FREE resources that will come in handy for you: therestaurantboss.com/toolkit/
Thank you for sharing…Quick question, the cost for food(where is this figure drawn from? Meaning food cost by usage or spend for that week?)
You're going to take the amount you spend on food in a month and divide it by the sales for that month. Here's our video on food cost that goes into greater detail:
ua-cam.com/video/_vTZI1s2SFs/v-deo.html
-Dawn, Team TRB
could you make how to make f & b bufget please, thanks
Hi Efraim! If you go to my blog site (therestaurantboss.com/video-blog) and search for "budget" there will be 4 blogs on the subject that should pop up. Hope that helps!
Can you make it video P & L Report in excel ... deatails video
Hey! We're making this available inside our free Restaurant Owners Toolkit along with dozens of other resources. Grab it here: www.therestaurantboss.com/toolkit -Dawn, Team TRB
Hi great video, Ive gone over it a few times already!
You say total COGS + total labor = Prime costs, yet the numbers on the sample sheet do not add up. (23,353 + 43,671 = 41,199)
So my question is, are the numbers on the P&L random numbers, OR am I not understanding how to get to PRIME?
It is always possible I made a mistake on the video, I do that a lot. But prime cost is Total Cost of Goods Sold + Plus Total Labor.
Even I got wrong figures , Thanks for clearing it up!
I have one query
I want to learn and make my own report bt neither I don't know this how to make nor I have a position so can I make this same sheet for a practice purpose.
Are these all categories will be same for every restaurant
Please guide me
Apart from my query l quite like this video and already cleared some doubts of mine.
Great work
Hi! I am so glad the video was helpful. In general, yes, the categories are the same for every restaurant. I do not have a template to help you set this up as I don't really believe in using P&Ls to control costs. This is why I created my cost control software, clickBACON.com
Hi.. do you have a video on how to initially create the p l spreadsheet? How did all the number get there? Through the initial set up of the restaurant and 1 purchases? Thank you
If you go to the 2:52 mark in the video, I show a sample P&L sheet. You can see the categories that are set up and the numbers used in each category. The numbers got there from the previous month's history. Like I said in the video, a P&L is historical data. You initial data will be based off of your budget. Hope this helps!
@@Therestaurantboss thank you!
Do the payroll dollar amounts have incorrect values?
Hi, How can i make a sales analysis report for a restaurant? can you help?
Hi Ali! I recommed checking out my software, clickBACON. It's a full financial dashboard and gives you all of the numbers you need in real time, which a P&L doesn't. Check it out: www.ClickBACON.com
How to make an annual budget of 5 star hotel food & beverage department and how room occupancy can effect on f&b budget
Hey Syed, that's a great question but not one we can easily answer in the comments of a video. We have a few videos on restaurant budgets that might help:
How to create a restaurant budget:
ua-cam.com/video/cYGtUQhrqZ4/v-deo.html
Restaurant budgets made easy:
ua-cam.com/video/gHg8gUaQeVc/v-deo.html
Restaurant budgets, taxes and profits:
ua-cam.com/video/tol0qRnthnM/v-deo.html
If you still need help and would like Ryan's help setting this up you can either book a 90-minute strategy call with him or hire him to complete the work for you.
Book your call here: www.therestaurantboss.com/coaching
To discuss having Ryan complete the budget for you, send us an email: support at therestaurantboss .com
-Dawn, Team TRB
I am not understanding the Prime cost as you have said that that its COGS+Labour buts the figure is not matching... Please guide ASAP
Hi! See if this explanation helps a little > clickbacon.com/restaurant-prime-cost/
Could you please break it down and make it detailed one by one
Im not tracking inventory yet. should i categorize groceries as COGS or as supplies?
Ryan doesn't like inventory for most independent restaurants. But to answer your question, it depends on what you consider groceries. If it's all food, it's COGs. If there's sponges in there, it's considered supplies. Hope that helps! -Dawn, Team TRB
@@Therestaurantboss thank you for your reply!
Is this P&L spreadsheet available for download? Thanks
Hi Jeremy! I am sorry but it's no longer available. Since I made this video, I have created a cost control software platform that operates in real-time so you have much better information and control. Check it out: www.ClickBACON.com
Your description on PnL is quite good, but the question is, if an interviewer, tell us something about PnL, or what is PnL, so what should be the answer given to them. So that they should get to know that the person sitting right in front of them knows about, what exactly is PnL.
Thanks for tip... In an effort to keep my videos short, I am not going into too much detail on subjects that can easily be found all over the internet.
I could be wrong, but it appears that your Total COSG percentage is off. Shouldn't it be around 31%?
I thought prime expenses are labor + Cogs
Sir I have Question.. If I have a injured customer in Restaurant how would I handle him
First priority is to make sure they are OK so get whatever medical attention is needed. Then be sure to complete an incident report so you have dates, times, details and witness statements in case there is legal action later. You will not do as well in court with your memory vs. written statements were taken minutes after the incident. However, the priority is always the guest or employee safety, then paperwork.
i am a new manager but wanting to start my own business
Fantastic! Keep working towards that goal each day and I am sure you will be successful. If you want a little training on both aspects, check out our Restaurant Manager Certification: therestaurantboss.com/programs/rmc
Can I get a copy of that spread sheet?
I am very sorry, I do not share spreadsheet, but you can use my software BACON clickbacon.com to create a P&L very similar for your restaurant.
Hi. Thank you for the video. Now, I have been in the food industry for over 20 years and have seen few versions of the restaurant PNL and just wanted to know which one is the ideal to follow. some uses discounts after gross sales to come to net sales and some uses the discounts under the expenses. now which one is correct? and do we divide the expenses on gross or net? thank you
Depends on the discount. Each discount should be charged to a different account. For example, a staff meal discount should be charged to labor costs, a marketing discount should be charged to marketing, a kitchen error discount should be charged to cost of goods sold. This is very advanced and your accounting team should be able to help with it.
Hi can you give share the P&L sheet in EXCEL
Sorry, but I don't have one.
Can i see the 90 day planner?
therestaurantboss.com/boost-your-restaurant-in-90-days/
Hows that 43% under total cogs??pls reply
Because you don't add each percentage for each category together, you get a new blended calculation of total purchases divided by total sales.
how you calculate labor cost?
Hey! Great question. Check this out: clickbacon.com/restaurant-labor-cost/
Dawn - Team TRB
Sir can you please assist me that how do we decide the beverage selling price. For example landing cost of a bottle of J.W Black label is 35$. How much shall I sell it for what's the formula and is it universal for a 5star hotel restaurant ?? Please answer me
Hello
Thanks a lot for your support, I really appreciate,
Can you share with us a video for restaurants operations manager role
Why isn’t the prime cost equal to total COGS and total Labor Cost?
It is :) But when you divide it by the total sales for the same period, you'll get a prime cost percentage.
Let's say your total CoGS is $6,000 and your total labor is $4000. That would give you a prime cost of $10,000 which isn't incredibly helpful.
When you divide it by your sales (and then multiply by 100) you get a percentage. So if your sales are $16,000 then you can determine your prime cost to be 62.5%
Here's a video where Ryan breaks it down better: clickbacon.com/restaurant-prime-cost/
-Dawn, Team TRB
what about seasons
Can you elaborate on what you mean?
-Dawn, Team TRB
Too many line items. Consolidate the statements. I think you need to read the statements and have restaurant benchmarks to compare to. Those COGS% to Sales, etc. Pivot tables, slicers and dashboards would give owners quick snapshots to make decisions. Reading is one thing, understanding caveats and making changes are another.
Rick Darcy do you have sample sir?
Why the 5th of the month
P&L, by nature, are a historical record of what has happened in your business. We recommend using our software, www.clickbacon.com but if aren't getting the data in real time, it has to be as quickly as possible. If you wait until the 10th, 15th, 20th of the month, it's REALLY too late to do anything.
-Dawn, Team TRB
Thanks
But if you only make 3% in profit in a year then you are not making any money.
Completely agree. But if you can make 3% more, then 3% more after that, etc., you will start to see an impact on your financials. This is done by working with actionable data vs. historical data, which is the subject of this video.
owsm sir please provide me your mail id i just wanted to ask you more if it could be possible.
thanks & regard
Hi! Please visit www.therestaurantboss.com/start-here
Why do people call it P&L? It's P or L, dammit.
Thank you so much it was amazing,could I ask for something I need the fourth category more clearly because I didn’t get it or you can write it one by one
hi, came accross this video in my search for P&L, pls is there an editable template you know i could use? Or will i have to create an excel to look like the sample one in the video above?
Hey Kelvin! I no longer offer a P&L template because I do not believe the numbers you get from them are that helpful. They are always a month (or more) behind and you can't take action from them. I developed a software suite just for this reason that tracks food, beverage, labor costs and gives you real time, actionable data. Check it out: www.clickBACON.com