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Restaurant Accounting Tips Made Simple: Expert Ways to Boost Profits in 2025

Lavu

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).

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MRM Research Roundup: Diner Resiliency, Automation Technology, and Egg Prices

Modern Restaurant Management

Turnover Costs : The expense of replacing staff can be as much as $1,056 per FOH position and $1,491 per BOH position. Labor Cost Management : Instead of cutting staff, 68 percent of restaurants have embraced cross-training as the top labor cost management strategy.

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Restaurant Operations Overview: What You Need to Know

7 Shifts

For example, kitchen managers rely on software to let them know how much expected inventory they have in stock. Inventory was ordered based on par levels, which are set based on sales forecasts, which are in turn determined by how many guests you'll serve and what they'll order. All tasks in a restaurant are interconnected.

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[Guide] Restaurant Management Tips & Tactics: 2019 Field Guide

7 Shifts

Inventory management: Monitor and maintain food and beverage stock levels. Innovating: Identify issues in your restaurant—whether inventory or systems-related— and be willing to create solutions and processes to improve efficiency. Use the right inventory management systems. Cultivate relationships with a handful of suppliers.

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Back of House Restaurant Guide: Integrating FOH and BOH for Seamless Operations 

Apicbase

The back-of-house (or BOH) manages crucial elements that impact cost control and profitability. These include food production and inventory management. Additionally, the BOH handles food safety and restaurant administration. The roles of BOH and FOH staff are intertwined yet distinct.

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Restaurant Kitchen Staff is Key to Food Cost Savings

Restaurant365

Cross-contamination refers to when food becomes unusable during prep or storage because of unsafe practices. Or, in another example, if inventory is stored improperly or mislabeled in the walk-in, you may need to dispose of food that has been contaminated. Train Kitchen Staff on Proper Storage. Train Staff to Reduce Errors.

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How To Formulate A Restaurant Manager Job Description

The Restaurant Times

Typically, a restaurant’s operation can be categorized into two parts – front-of-house (FOH) and back-of-house (BOH). The FOH operations refer to activities that involve interaction with the customer, such as the waiting staff, lobby area, dining arrangement, etc. Managing Inventory. Handling Finances.