4 Finance Spreadsheets Every Restaurant Needs
When it comes to running your restaurant the financial side of things is just as important as what you serve up to your customers. If you want to know how your business is really performing then you need to know how you’re making use of your money.
This may feel a little daunting at first but with a push in the right direction you’ll be able to master your finances with the click of a button. To get you started let’s take a look at why you need spreadsheets and then look at 4 of the best that will make all the difference.
Why Do You Need Spreadsheets?
Spreadsheets are about far more than the here and now. They’re actually a powerful tool that will allow you to plan ahead so that you can see the growth that your hard work and culinary talents deserve. You can achieve all of this by:
Acting early to address losses or lower than expected profits
Understand how to plan for future investments that you’re thinking of making
Proactively setting and reviewing revenue targets
Making efficiency savings that will streamline your business
There are 4 key spreadsheets that your business simply cannot do without:
Startup Costs Spreadsheet
Let’s take a closer look at how you can use each one to ensure your business is always on the right track.
Using the Revenue Spreadsheet
The purpose of this spreadsheet is to show you your expected total revenue, and the individual revenue streams from food and drink.
You’ll need to enter the number weekdays you’re open, and then add the weekend days and holidays you’re open too.
Next you’ll need to enter your average sales for a single day in the middle of the week. Be sure to pick a day with a representative figure otherwise your analysis will be skewed.
You can then adjust the weekend and holiday sales figures to reflect what your restaurant turns over as these will often be more profitable.
Finally, enter the percentage split between food and drink and you’re up and running!
Using the Costing Spreadsheet
The revenue from the previous sheet is then passed to this spreadsheet which will show you how much you’re spending on food, drink, and labour, so that it can display your profit margin.
Start by entering your cost of goods sold as a percentage of the total sales figure. You should do this for both food and drink before repeating the same process for your labor costs. This should include everyone other than management. Their salaries should be entered as an absolute value in dollars.
Using the Forecast Spreadsheet
The purpose of a forecast is to show you how much you’re spending on controllable (marketing) and uncontrollable (rent) expenses in relation to your sales figures. The figure that you’re left with is then your profit.
The thing you have to do here is to break up all your expenses into an itemized list and then display them in terms of percentages of your revenue. This will tell you how much you’re spending on things like credit card fees and advertising, and what you’re getting in return.
Using the Startup Costs Spreadsheet
This is a great tool to use if you’re starting your restaurant and want to ensure that you keep an eye on the bottom line as you get things up and running. It will make sure that you get into good financial habits from day one so that you make the most of your precious startup capital.
The Last Word
Spreadsheets were probably the last thing you envisaged when you set out on your journey to open your own restaurant, but they’re a vital part of being successful. By paying close attention to the money you have coming in and how you use it, spreadsheets enable you to get an accurate picture of how your business is truly performing.