![]() ![]() One thing you'll quickly learn about college is that you can't fall behind, and if you do, it's nearly impossible to catch up. In other words, work is important, but it's always good to keep a balance between that and your friends.įebruary 14, - Ha ha, yeah. You may have heard the phrase "all work and no play makes Jack a a dull boy". Obviously, you shouldn't spend your college life slacking off and partying, but on the other hand, you shouldn't spend countless hours a day working on papers, unless required. More importantly however, this helps you to compare against your own historical data to ensure you’re making progress over time and maximizing profits.February 15, - Though I agree with you, I feel that it's also important to keep a balance between your aspects of college life. ![]() Knowing this number helps you to determine where your prime cost fits within the industry average. These are the first two categories you’ll find on your Profit & Loss Statement.įormula: Prime Cost = Total COGS + Total Labor Prime Cost as a Percentage of Salesĭefinition: Prime cost as a percentage of your sales is simply your total prime cost divided by your total sales. This includes your cost of goods (food and beverage) and labor expenses (including payroll taxes). Prime Costsĭefinition: Your Restaurant Prime Cost is inclusive of your largest expenses. “ Profit & Loss statement, revenue & expenses during a set period of time” Profit Marginĭefinition: You can think of restaurant profit margin as the amount of money you have left over after all expenses have been paid for. Operators who have a true understanding of their fiscal health enable themselves the ability to make proactive business decisions, improve their operational efficiency, and ultimately, their profitability. “Power of Attorney, part of onboarding paperwork” Period End Reviewĭefinition: Period End Reviews allow operators to review metrics and identify areas of opportunity with audits and benchmarks. Restaurant Payroll Percentage Formula = Total Payroll Costs / Total Revenue POA You can then view which items have positive sales and positive contribution margin to optimize profitability within your menu. Menu Item Velocity Reportingĭefinition: Menu Item Velocity Reporting shows daily operational data that identifies volume of sales per menu item or category. Consistently managing this task is the outcome of the system you’re using to obtain your results. Accurately identifying and understanding these relationships is what makes Engineering your Menu about as difficult as a hole-in-one. Whether in your personal or professional life or in the simple understanding of whether your Buffalo Chicken Wings make you any money as the word implies, there’s more than one person, or key metric to keep an eye on. “Master Service Agreement, part of onboarding paperwork” Menu Engineeringĭefinition: Menu Engineering is the practice of identifying the relationship between the sales and profitability of each menu item in your restaurant, then making sure you actually use the information to sell more of the right items and make money while you’re at it. These can include amounts owed to vendors, tax agencies, credit cards, or loan lenders. They live on the Balance Sheet and are the sum of money owed at a future date. Payables are amounts for items or services that have not yet been paid – in other words, outstanding bills. Accounts Payableĭefinition: This common restaurant term is easy: it’s money owed by your restaurant to your creditors. RASI’s accounting periods offer custom flexibility to align with your reporting schedule, including 13-4 week periods M-S or W-T, 4–4-5 (for each quarter, the first financial period is the first 4 weeks, the second period the next 4 weeks, and the third period the final 5 weeks), or 5-4-4 periods (opposite of 4-4-5). Quarterly reports are simply four-month snapshots of a restaurant’s performance. Tax reporting day (April 15th) is a twelve-month accounting period. “Authorization to Debit, part of onboarding paperwork” Accounting Periodsĭefinition: A predetermined amount of time – usually three, four, six or twelve months – that a restaurant uses to report its finances. ![]()
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