One of the important things in running a restaurant is determining what sells best and how to maintain that flow of income. This is where a restaurant income statement comes in, and here is how users can create one so they can easily keep track of products that sell well with customers.
A restaurant income statement is a tool used to review the total balance of a restaurant’s revenue through the food and goods sold in a period of time. This allows restaurant businesses to determine what allows them to gain more profit and what doesn’t, so they can cut costs and operating expenses.
Similar to a cash flow statement, a Restaurant Income Statement is quite easy to make. Here are five steps on how to craft one.
Be specific with what sort of restaurant you are running, be it a bar themed restaurant or a small business. That way your income statement will be able to make sense when people read through what products are making revenue for the business.
To calculate your income, you must put it in a specific timeframe. That way, you can create a pattern to determine if there is a consistent way your restaurant has a gain or loss of cash within a specific period of time. Some examples of timeframes you can use include weeks, a month, a quarterly (a 90 day period), or even a year.
List out the cost of the goods/products that are selling. That way you can calculate just how much income your restaurant is making. Be sure to specify the items individually as well, for example, instead of just listing out meat products, you can specify them as chicken, beef, and so on.
It is important to make your income statement as coherent as possible. So organize the following information on a table or a list, this way when manegment looks through the restaurant income statement, they can easily understand the data being presented to them.
This goes without saying, but to complete your income statement, you must calculate the sum of all the products that have sold. Use a calculator to make sure you get the numbers right. Once that’s done, your restaurant income statement is complete.
A restaurant income statement is a mangement tool which can help resturant managers discover which of their dishes are popular with customers and make the most income, so that they can make a strategy on how to raise that income with whatever popular products they have.
Restaurant P&L is the short term for Profit & Loss.
A restaurant Profit & Loss statement refers to a manegement tool that helps restaurant managers calculate and determine what makes them profit and what makes them loose money, allowing them to manage their sales strategy better.
Restaurant income statements are not only easy to make, but also a useful tool in managing a restaurant. With all the data it provides, a restaurant manager can use it to improve on strategy on how to make more profit, such as ordering more supplies of what is popular with consumers. Check out our other business statements for reference.