What is the Average Profit Margin for a Restaurant?
An adequate profit margin is critical for the sustainability of a restaurant business, as it’s from the profits, however slim that owners get paid, and restaurants grow. If a restaurant business cannot maintain a sufficient profit level, it may not be worth the time and money the owners put into it, therefore shutting down completely. […]
How to Record Tips in Accounting
When restaurant staff receives tips, both employee and employer incur legal obligations to the IRS to correctly record the tip amounts, comply with reporting requirements, and pay income and payroll taxes. For the restaurant operator, it’s critical to get these details correct from the start to avoid unnecessary penalties. This article will cover how to […]
How Do Restaurants Use Data Analytics?
When it comes to restaurant data, most operators record and track basic sales data, such as tickets, ticket size, tips, and nightly totals for food and beverage. They may be doing this manually, or directly through their point of sale (POS) system. Your average restaurant then takes this basic sales data, copies it into spreadsheets, […]
Turn Your Restaurant Analytics into Profitable Business Intelligence
Today, innovative restaurants are using business intelligence to drive operational efficiencies, improve profitability, and reduce managerial burdens. How do they do it? The clearest way to understand restaurant business intelligence is to run through example metrics used by experienced operators. Note that in order to use business intelligence in your restaurant, you need to be […]
Restaurant Sales Forecast with POS Data
As a restaurant operator, you know that a modern point of sale (POS) solution generates tons of data. The question is, how do you use that data to materially improve restaurant operations? One of the best applications for POS data is as a tool to make more accurate restaurant sales forecasts. Data-based sales forecasts can […]
What Is a Chart of Accounts for a Restaurant?
What is a Restaurant Chart of Accounts? A restaurant chart of accounts (COA) is a structured financial statement, consisting of categorized revenue and expenses. By convention, a chart of accounts for restaurants is broken up into sections for (at a minimum) operating revenue, assets, liabilities, operating expenses, and equity, with additional categories that vary by […]
Why You Need to Integrate your POS System and Accounting Software
The Importance of Integrating Your POS System & Accounting Software Think of the multitude of processes your restaurant performs on a daily or weekly basis – Payroll. Payment processing. Vendor Payments. General accounting – and those are merely the tip of the proverbial iceberg. Now, think about how seamless all these tasks would be with […]
The Best Tips for Strategic Vendor Management
If you’re new to the restaurant business, you’ve probably heard about strategic vendor management but aren’t exactly sure what it entails. Well-experienced business owners in the field know it’s absolutely critical for maximizing not just ROI but also the relationships and connections that make every day in a restaurant run smoothly. What is vendor management, […]
How Do You Categorize Restaurant Expenses?
Opening a restaurant is a costly endeavor, and successfully running a restaurant requires strict attention to your restaurant expenses to control costs and increase efficiencies. Few restaurants can get by with paper, pencil, and a stack of excel sheets for manual data entry. Such restaurants miss out on the opportunity to reduce expenses and increase […]