Why Restaurents Go Broke

AED

Variable Costs :
Food & Beverage Costs
Other Variable Costs :
Casual or hourly wages
Employment On-Costs
Repairs,Maintenance,Cleaning
Administration & Marketing
Gas and Electricity
Sundry Costs
Telephone & Internet

2,464

2,000
450
300
400
264
300
100

28%

3%

Fixed Costs :
Fixed Wages
Rent & Occupation Costs
Insurance - Fire, Theft etc
Loan Costs

1,000
1,100
162
260

Total Costs

8,800

13%

AED

Income :
8,800 Total Sales
1000 Customers
8.8 Per Head Spend
8,800 Total Costs
0 Net Profit

Employee Cost
Prime Cost
Loan Value
Interest

39%
67%
150000
9%

5 Profit Improvement Steps for a New Caf or Restaurent

1 Customer Base

Before
10000

After
10000

4%
400

4%
400

2 X Conversion Rate
Customers
Per Week
3 Visits / Customer
Total Visits
4 Average Sales Value
Total Sales
5 V.Cost
F.Cost
Profit

Per Month

Per Week

1
400

4
1600

1
400

10
4000

10
16000

10
4000

75%

12000
4000

75%

af or Restaurent
After
10000
4%
400
Per Month
4
1600
10
16000
12000 F&B,Wages,Utilities etc..
4000 Rent,Insurance,Interest etc
0

Totals

99

1259

Menu Profit Analysis

Menu Item
Chicken
Spaghetti
Fish
Steak
Shrimp
Bread
Soup
Chocolate

Number Sold Cost of Item Menu Price Gross Sales

50
5
15
750
7
3.5
12
84
6
5
14
84
12
8
12
144
5
7
16
80
9
2
5
45
6
3
6
36
4
5
9
36

G.P%
Food Cost%

767.5
61%
39%

Profit / Item Total G.P

10
500
8.5
59.5
9
54
4
48
9
45
3
27
3
18
4
16

800
700
600
500
400
300
200
100
0
0

10

Usefuls
Losers

20

30

Number Sold
Cost of Item
Menu Price
Gross Sales
Profit / Item
Total G.P

20

30

40

Big Winners
Steady Winners

50

60

Better Conversion
Inquiries
Customers
Customer Orders
Main Course
Bread
- 1 Person in
Dessert
- 1 Person in
Coffee
- 1 Person in
Soft Drink - 1 Person in

200
100

50%
No.

4
2
4
2

Cost
100
25
50
25
50

10
5
5
2
3

Sales
1000
125
250
50
150

Profit Sensitivity Analysis

Sales
No.of Customers
X Avg. Spend / Head
Sales Revenue
Expenses
F&B
Hourly Labour
Permanent Labour
Other Exp (Var.)
Other Exp (Fix.)
Total Exp.
Net Profit

Before
2,000
5
10,000

3,000
1,500
2,000
1,000
2,000
9,500
500

After

Discount Effect Calculator

Before
Selling Price
Qty Sold
Total Sales
Unit Cost
Unit Profit
Total Cost
Total Profit

Disc. By
10
100
1000
4
6
400
600

After

Revenue Per Available Seat Hour

Time
5-6 PM
6-7 PM
7-8 PM
8-9 PM
9-10 PM
Total

Seats

Seats OccupiedPer Head Spend

150
150
150
150
150
750

0
100
150
150
20
420

Seating Efficiency :
Revenue / Seat Hour

56%
6

0
10
11
11
10

Total Sales F&B Cost

0
1000
1650
1650
200
4500

0
300
495
495
60

G.P
0
700
1155
1155
140
3150

Calculating the Value of Coupon Deals for your Busin

Coupon Deal
Number of Deals Sold
Regular Menu Sale / Head
Coupon Disc
Coupon Price
Commission on Coupon Price
Net Price
Food & Bev Cost % on S.P
G.P
Total G.P.

Breakage% (Deal not Used)

Upsell
Extra Staff Costs
Number of Customers who Return
Long Term Value of a Customer

50%
40%
30%

100
60
30
30
12
18
18
0
0

20%
10%

360
300

20%
120

20
2400

ls for your Business

Regular Price
100
60

The 2% Effect
Before
Customer Base
Per Head Sales
Total Sales
V.Cost
F.Cost
Profit

1000
10
10000
7500
2000
500

After
1000
10.20
10200
7500
2000
700

Cost of Staff Turnover

No. of PositionsAv.Months Staff Stay
20
20
20
20
20

Cost for each New Person Employed

Advertising,Recruitment
Interviewing
Training
Staff Inefficiency in 1st Week
New Uniform etc..
Total

6
7
8
12
24

New Staff each YearCost of Recruiting

40
34
30
20
10

100
50
100
300
150
700

28,000
24,000
21,000
14,000
7,000