Remove Insurance Remove License Remove Waste
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Average Restaurant Profit Margins: What They Are And How to Improve Yours

ChowNow

It factors in all your operating expenses, like labor, rent, insurance, equipment repairs, marketing, and more. came to $35,000, and your operating expenses (labor, rent, insurance, etc.) Add in things like equipment repairs, licensing fees, and other expenses, and youre constantly fighting to stay ahead of significant cost increases.

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Your Guide to A Food Truck Commissary: What it is and How to Start One

The Food Corridor

These licensed commercial spaces give operators a place to store inventory, prep food, and clean their equipment—ensuring they meet health codes and run efficiently. Sanitary Waste Disposal – Grease traps, greywater dumping stations, and proper cleaning areas help maintain health and safety standards.

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Inside the World of Hospitality and Leisure Accounting

Paper Chase Accountancy

Detailed Inventory Control: Especially for restaurants, managing perishable inventory (food and beverage) requires meticulous tracking to minimize waste, control COGS margin , and ensure profitability. Spoilage and waste management: Identifying and minimizing losses from perishable goods.

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

Lavu

Occupancy Expenses: This refers to fixed costs like rent, property taxes, utilities, and property insurance. This way, you can reduce waste and identify where you can cut costs. By tracking and recording your food waste accurately, you will be able to reduce their instances.

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Restaurant Profit Margin: 7 Ways To Actually Make Your Operation More Profitable

SpotOn

But many owners don't account for the high fixed costs of bars —like repairs, insurance, and alcohol theft which can leave them with less profit than expected. These include rent, utilities, licenses, equipment, repairs, credit card processing fees—anything that's not labor or COGS. Overhead costs.

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The Ultimate Guide to Restaurant Costs

7 Shifts

Your restaurant is different so ensure you find your ideal food cost (discussed later) Labor cost : Roughly 30% of revenue including management salaries of 10% Insurance varies by provider and type. Fixed costs include rent, mortgage, salaries, loan payments, license fees, and insurance premiums. Define reasonable portion sizes.

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A Comprehensive Guide To Restaurant Profit Margins For All Restaurant Types

7 Shifts

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. . Train your staff to use ingredients efficiently and plan your menu to minimize waste. Constantino writes.