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The Ultimate Guide to Restaurant Costs

7 Shifts

For example, though food costs are running costs, you should budget for beginning inventory when opening your restaurant Many of your startup costs will be one-off costs, though some are subject to annual renewals Restaurant Expenses Vs. Restaurant Costs One often confused (and misused) sets of terms are restaurant costs and restaurant expenses.

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Owning a Bar: Everything You Need to Know

7 Shifts

Sorting Out Paperwork and Licensing Below is a breakdown of the licenses and documentation you'll need: Business license : The cost of registering your business will vary by state and includes a registration and filing fee. To apply for a liquor license, consult the Alcohol Beverage Control (ABC) Agency) in your state.

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Restaurant Accounting: A Comprehensive Guide

7 Shifts

To calculate this, use the formula: Cost of Goods Sold (COGs) = Beginning Inventory + Purchased Inventory - Ending Inventory Gross profit & gross profit margin Your gross profit and gross profit margin help you track how much money you're making after deducting your Cost of Goods Sold.

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How to Open a Bar: Comprehensive Guide on Starting a Bar

7 Shifts

However, note that bar profit margins vary due to various factors like tax rates, licensing laws, customer demographics, and the cost of living in your area. Your business name will also appear on your marketing materials, staff uniforms, menu, social media accounts, and advertisements, so make sure it isn't too long or complicated.

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How to Write a Restaurant Business Plan 

ChowNow

This includes – but is not limited to – social media accounts and email campaigns, online advertising, potential partnerships, and promotions. Suppliers and inventory : List the primary suppliers you plan on working with and share information about how you will manage the restaurant’s inventory.

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How to Create a Practical Restaurant Budget

ChowNow

Startup Budget This covers initial costs such as equipment, licenses, renovations and initial inventory. Allocating funds to promotional activities and advertising will help drive customer traffic and increase sales. Additionally, consider using an inventory tracking system to reduce spoilage or lost inventory.

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How to Read a Restaurant P&L (Profit and Loss) Statement + Free Template

SpotOn

Your P&L line items should be consistent with the ones on different platforms—POS, inventory management, and accounting software. Digital advertising, marketing software , printed menus, signage, promotions, and loyalty programs. Spotify, ASCAP/BMI licensing fees), and special events. Music & entertainment.