| Many of us know what's the breakeven point in | | | | 7. Assess investment abilities for expansion, |
| accounts - It's especially important to constantly | | | | improvement and marketing. (Or more) |
| update, analyze, scan and learn from the | | | | These are the primary usage of this data, and will |
| restaurant cost sheet (below) as we move along | | | | not just be concluded of those five (5) key points |
| in a new business. Getting regular updates | | | | stated above. Depending on the Restaurant |
| regarding this serves many purpose - And today, | | | | Manager, he could include additional data like |
| we're going to look into what data will this chart | | | | Objective Planning, Estimated Sales after |
| serve and how we can take the analyze; on the | | | | Improvisation, etc. |
| plus, move towards the next step. | | | | Restaurant Cost Sheet |
| Break Even Point | | | | The restaurant cost sheet is divided into a few |
| Definition of Breakeven Point | | | | sections: |
| The Breakeven point literally means the amount | | | | Restaurant Sales |
| of Total Revenue (Gross Profit) is equal to the | | | | * Food Sales |
| amount of Total Expense (Costs). Thus, there are | | | | * Beverage Sales |
| no losses or gains in that particular point. Anything | | | | * Miscellaneous Sales |
| above the breakeven point is considered | | | | Cost of Sales |
| profitable, and below is loss. Breakeven could also | | | | * Food Cost |
| be termed in another way as the point where | | | | * Beverage Cost |
| previous investments (on the restaurant) were | | | | * Miscellaneous Cost |
| already covered, and losses are already covered. | | | | GROSS PROFIT |
| How to use these data? | | | | Restaurant Sales - Cost of Sales |
| Often when a restaurant's business hit the | | | | = Gross Profit (Positive/Negative) |
| breakeven point, it's a joyful thing. And the earlier | | | | Operating Costs |
| the business hits the breakeven point, the better | | | | * Labor Costs |
| it is. Simply for the fact that this is the time | | | | * Variable Utensils, Equipments and Cutleries |
| where money is made - All previous investments | | | | * Gas |
| are covered by profits made (below the | | | | * Laundry |
| breakeven point). As you can see, this Sample | | | | * Credit Card Fees |
| Business here took almost 7 months to break | | | | * Operating Supplies |
| even. (1 Quarter = 3 months) | | | | * Marketing and Advertising |
| Accounts should always record costs and profits | | | | * Utilities |
| in the restaurant cost sheet. Among | | | | * Repairs and Maintenance |
| documentations that are included with this chart | | | | [ TOTAL OPERATING COSTS ] |
| are: | | | | Fixed Costs |
| 1. Invoices and receipts. | | | | * Rent |
| 2. Expenditure Statements. | | | | * Taxes |
| 3. Income Statements. | | | | * Insurance |
| 4. Monthly and Quarterly Report (Information and | | | | * Interests |
| data length & size varies, respectively) | | | | * Depreciation Value |
| 5. Risk Analysis & Ongoing Viability Log | | | | [ TOTAL FIXED COSTS ] |
| (Quarterly) | | | | NETT PROFIT |
| These data can be used to: | | | | Gross Profit - (Total Operating Costs + Total |
| 1. Assess pricing structure of the menu | | | | Fixed Costs) |
| 2. Estimate miscellaneous costing (accidents, staff | | | | = NETT PROFIT |
| turnover, bonuses, extra fixed costs) | | | | Feel free to add into your cost sheet any extra |
| 3. Assess managerial abilities and skills of the | | | | fixed costs, variable costs or whatsoever that |
| Operations Management team | | | | you need to. You should always have a column |
| 4. Understand market trends throughout the | | | | for the first (1st) Quarter and the percentage, |
| whole year | | | | next column will be second (2nd) Quarter and the |
| 5. Analyze viability of changes made (if any) to | | | | percentage; for easy comparison between |
| the operations in the restaurant | | | | Quarters in a year. |
| 6. Speculate next season's gross profits | | | | |