Lavu

JUNE 26, 2025

Restaurant accounting is the process of interpreting and analyzing the revenue, cash flow, inventory, and income statements of a restaurant. Let’s start with some basic terms: Cost of Goods Sold (COGS): This is the cost of all the items and ingredients on your menu (Beginning Inventory + Purchased Inventory – Ending Inventory).

2025

Paper Chase Accountancy

JULY 25, 2025

Accounting must track and analyze performance across peak and off-peak seasons, affecting revenue recognition, staffing, and inventory management. Point-of-Sale (POS) Integration: Seamless integration with POS systems is critical for capturing sales data, managing inventory in real-time, and ensuring accurate revenue reporting.

Hospitality

Paper Chase Accountancy

JUNE 30, 2025

Effective bookkeeping and financial management, including proper inventory and labor cost control, are vital for the financial success of nightlife venues. Bars typically have a simpler food menu but a more complicated drink menu, while restaurants deal with a more extensive food inventory and simpler drink lists.

Bar

Modern Restaurant Management

DECEMBER 31, 2024

With alcohol sales shrinking, restaurants must reevaluate their offerings, menus, and inventory management to maintain profitability. ” Holiday Dining Options To help understand where people are eating and how the holiday impacts the restaurant industry, Upside analyzed nearly 10,000 food and beverage outlets.

Franchise

SpotOn

DECEMBER 30, 2024

Gross profit margin subtracts only the Cost of Goods Sold (COGS) to determine the profitability of your food and beverages, while net profit margin subtracts all your costs to determine the profitability of your entire operation. Your Cost of Goods Sold are your food and beverage costs along with the cost of any merchandise you sell.

Operations

SpotOn

OCTOBER 25, 2024

Whether bartending , working the front-of-house, or eventually getting into management and becoming Beverage Director, Don sees the hospitality industry clearly but doesn’t lose hope. ” As Beverage Director, Don became acquainted with the unwieldy world of restaurant costs. SpotOn is a better solution.”

Front of House

7 Shifts

JULY 12, 2024

Fixed costs Fixed costs are expenses that remain constant, including rent, insurance, and utilities. If transferring isn’t an option, you can try to reduce other fixed costs like insurance premiums. Your inventory is one aspect to keep track of to avoid overordering.

Food Truck

7 Shifts

AUGUST 2, 2024

When hiring restaurant accountants, your primary consideration should be those who understand the complexity of the food and beverage industry—both front-of-the-house and back-of-the-house operations and management. This number is essential because it helps you determine the price of your food and beverages.

Point of Sale

7 Shifts

AUGUST 7, 2024

But there's more to it than adding up your inventory bill and comparing it to your sales. The cost of food and beverages is a bit of a moving target. Food and beverages make up half of your prime costs (along with labor). Food cost percentage is the ratio of the cost of food inventory to the amount of revenue it generates.

Food

Modern Restaurant Management

JANUARY 2, 2024

While artificial intelligence (AI) has been a growing component of this technological landscape, its role is expected to evolve into a more supportive capacity, focusing on predictive analytics for improved inventory management and the personalization of customer experiences. The impact of these technological shifts is multifaceted.

2024

Modern Restaurant Management

JULY 10, 2024

Among the reasons restaurants fail (poor location, inadequate marketing, lack of staff and inventory control, uninspired menu, unreasonable pricing), customer theft is rarely on the radar. And yet, the diner who walks out with your logo beer mug is damaging your restaurant’s bottom line.

Back of House

7 Shifts

JUNE 4, 2021

Inventory turnover ratio. Your CoGSs is an essential number to have when determining your menu prices, inventory and impacts your net profit margin. To calculate your COGs, you need the following numbers: Beginning Inventory, or the value of the inventory you start with. Ending inventory , or what you have leftover.

Point of Sale

7 Shifts

AUGUST 18, 2024

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.

License

Restaurant365

AUGUST 19, 2021

Restaurant accounting covers all areas of your business, even inventory. While you may think of your restaurant inventory as part of operations, restaurant inventory management should also be considered an accounting function. So, inventory has an important place in your restaurant accounting.

Inventory

7 Shifts

JULY 5, 2024

With 50% of restaurant owners reporting inventory costs as the top concern last year, you must leverage reporting tools to see how much profit your restaurant is making and where your money is going. Running a restaurant is not just about serving great food; it’s also about managing finances.

Cash Management

7 Shifts

OCTOBER 8, 2021

There are dozens of costs associated with running a restaurant, and many of them remain out of your direct control: rent, utilities, insurance—etc. Food and Inventory Costs. Cost of goods sold is the raw material cost of your beverages and food, and labor cost is made up of payroll, employee benefits, taxes, and bonuses.

Seasonal Menu

7 Shifts

MAY 1, 2024

For instance, you can record your food and beverage sales separately. This is one of your core restaurant management responsibilities, especially because you handle lots of inventory in and out of your kitchen daily, including the ingredients you use to prepare your menu. If not, your lease payments should be reflected here.

Cash Management

Modern Restaurant Management

AUGUST 5, 2020

The bites will also be served with the option of twelve different dips, along with regular or sweet potato Tyga Tots, chocolate chip cookies, and beverages. ” Ervin Cohen & Jessup Launches Food, Beverage and Hospitality Practice. Selvin (insurance and business interruption) and Elliot N. Minnow Secures Funding.

Food Safety

Restaurant365

FEBRUARY 25, 2020

Your restaurant profit margin can be influenced by food and inventory trends, your geographic location, the state of the broader economy, and a wide range of other factors. Cost of goods sold (CoGS) refers to the total cost of the inventory used to create food and beverage items during a specific period of time.

Loyalty Program

Restaurant365

MAY 26, 2020

For a restaurant, this includes your food and beverage ingredients, as well as other supplies like napkins, coffee filters, etc. To calculate your CoGS totaled during a given period, you can use the following formula: Beginning Inventory + Additional Purchases Made During the Period — Ending Inventory = CoGS.

Point of Sale

7 Shifts

AUGUST 18, 2024

To apply for a liquor license, consult the Alcohol Beverage Control (ABC) Agency) in your state. For example, do you have to buy insurance? For example, to serve beer and cider in New York City, you'll pay $960 (plus a $100 filing fee), and a full on-premise liquor license will cost $4,352 (plus a $200 filing fee).

Bar

7 Shifts

MAY 23, 2024

This includes: Net Sales: The total revenue derived from your sale of food and beverages. You can also use this to keep track of other costs, such as insurance, license fees, repairs and maintenance, and the actual costs you incurred for a better and closer comparison.

Point of Sale

Restaurant365

SEPTEMBER 23, 2021

For instance, since restaurants primarily sell food and drink, inventory turns over at a very frequent rate, and sales are made up of a high number of transactions. Between inventory, sales, and other data points like labor, restaurants generate an enormous amount of data. What specific issues do restaurants face in accounting?

Cash Management

EATER

AUGUST 16, 2023

My career in the beverage industry had an extremely auspicious start. In January of 2020, I flew to Los Angeles to host a launch luncheon for a dozen key journalists and beverage professionals. But that ended on December 31, 2022, when I ceased all operations for an unspectacular reason: I ran out of inventory.

Point of Sale

Food Business

SEPTEMBER 12, 2017

Here is the formula: FOOD COSTS + BEVERAGE COST + SALARIES & WAGES + PAYROLL TAXES & BENEFITS Here's how: actual cost of goods sold start with your beginning inventory, add to it your total purchase for that period (in this example, let’s say one month), then subtract your ending inventory. WHAT'S YOUR INVENTORY?

Brewery

Restaurant365

JANUARY 5, 2021

The Act also redefines payroll costs to specifically include group insurance payments made on group life, disability, vision and dental insurance. Enables PPP borrowers to include additional group insurance payments when calculating PPP payroll costs. PPP improvements relevant to restaurant businesses.

Insurance

Restaurant365

MARCH 18, 2020

Consider reducing your food costs by limiting the number of menu items in a way that allows you to streamline your inventory. Consider offering a takeout menu that simultaneously allows you to slim down your inventory and minimize your prime costs. Common fixed costs include: Rent, insurance, and property tax. Labor costs.

Point of Sale

Restaurant365

FEBRUARY 19, 2020

Non-controllable costs, like the fixed costs of rent, insurance, and salaries, are predictable expenses. Foundational restaurant costs can be divided into: Cost of Goods Sold (CoGS): also known as food cost, the total cost of all food and beverage ingredients your restaurant used during a specific period of time.

Point of Sale

The Restaurant Times

SEPTEMBER 19, 2021

Time has never been better to open your food truck, and the most critical business step is investing in insurance. However, if you don’t have the correct insurance, your food truck might cost you thousands of dollars or perhaps your business in jeopardy in time of a mishap. . Food Truck Insurance Cost . Kind of Insurance.

Food Truck

Modern Restaurant Management

JUNE 28, 2024

Fast food restaurants also receive high benchmarks for staff courtesy and both food and beverage quality (all 84), although sit-down chains outperform fast food on these measures. car finance, fuel, insurance, etc.) (22 Surprisingly, this coffee beverage is also popular in Turkey, outdoing the famous Turkish coffee on its home ground.

2024

Society Insurance

NOVEMBER 15, 2022

Taking inventory and reporting low-stock items to the chef or manager. Finding that silverware hasn’t been rolled, the bar wasn’t properly restocked, or that inventory orders weren’t placed on time can derail your operations in the midst of a rush. Polishing glassware and rolling silverware for the next day. Updating food labels.

Front of House

Restaurant365

DECEMBER 17, 2019

Recurring restaurant costs would include costs like lease or mortgage payments, employee salaries, food and beverage costs, utilities, insurance and permits. Fixed costs such as insurance, rent, and loan payments do not fluctuate month to month. These recurring costs can be broken down further by category.

Point of Sale

Restaurant365

NOVEMBER 18, 2021

Your restaurant orders, receives, and counts food all in one system: your inventory management software. Your inventory management solution measures and stores all the information you need about your food cost. While there are many details surrounding your food cost data, the actual tracking is relatively simple.

Employee Relations

Restaurant365

NOVEMBER 30, 2021

The ACA requires employers to offer full-time employees compliant health insurance coverage and document this offer for the IRS. Employers with 50 or more full-time employees, as well as self-insured employers, are required to offer these benefits. Staying compliant with the ACA requires robust recordkeeping for employers in general.

Restaurant Law

Restaurant365

OCTOBER 15, 2021

Your restaurant labor cost includes everything your restaurant spends on labor, from salaries and hourly wages to payroll taxes, bonuses, and benefits like health insurance or vacation days. Total labor cost. Here are a few helpful labor cost terms, along with how they are related to your total labor cost.

Management

Restaurant365

OCTOBER 23, 2019

Cost of Goods Sold (COGS) is the combined costs of food and beverage ingredients that were sold at your restaurant over a certain period of time. It’s important to note that COGS doesn’t include one-time, non-inventory-related costs, like repairs for a broken oven, new barstools, restaurant decorations, or utility bills.

Point of Sale

Restaurant365

OCTOBER 22, 2021

Typically, your total labor cost accounts for “fully burdened labor”, which includes your hourly and salaried wages, payroll taxes, benefits like health insurance or vacation days, bonuses, overtime, and more. An accurate CoGS relies on up-to-date numbers from your inventory management system. How to calculate net profit.

Point of Sale