Measuring Financial Health

Operating a restaurant involves handling countless details - serving customers, managing staff, and keeping the kitchen running smoothly. But there's another part of the job that's just as important - knowing if your business is actually making money. That's where the Profit and Loss Statement (P&L) comes in.

A P&L is simply a report that shows how much money came in, how much went out, and what's left over at the end. It breaks things down into categories like sales, food costs, labor costs, and other expenses. This helps you see where your money is going and where you might need to make changes.

You might think you can keep track of this in your head, but numbers tell a different story. In fact, research shows that restaurants using monthly P&L reviews are 25% more likely to stay profitable than those that don't. By checking your P&L regularly, you can catch problems early - like food costs creeping up or labor hours going over budget.