There is no other industry as competitive, as difficult to make a profit with, and as hard as food service. It is a nasty business, physically demanding and at times you want to give up; but, that smile on the face of the customer when they bite into your recipe is beyond articulating.
Below are many articles related to this industry. Most are detailed and they are designed to educate and help the owner solve typical problems. If you desire some quick answer, this is not the place for you. Business is not like a 30 minute comedy on TV; solving your problem with one simple answer. Most issues take time and training to address appropriately. Serving food is complicated and stressful. The industry is continuously evolving.
Value Investing Episode 1 – Introduction and Membership Program
I have always been impressed by those that provide meals to our society. Overall, I don’t think they charge enough, but that is just my opinion. It also comes out in the numbers. I have reviewed the books for over 40 different types of food service operations.
There are two costs that stand out in the restaurant industry. Food and labor comprise more than 45% of the typical expenses of the restaurant. No other expense comes close to these two costs. This article is dedicated to controlling the labor costs in your food service operation.
The top two costs associated with owning a restaurant is labor and food. Controlling these prime costs in effect is the bottom line in your business. How do you control food costs? First identify the correct quantity and quality of food you serve.
Equipment costs for a restaurant can easily consume the gross profit of your business. The key is to keep the costs low in order to spread the costs appropriately over time. Purchasing equipment for a restaurant requires planning, researching and using finesse to acquire equipment at the lowest cost possible. This article is dedicated to teaching the ...
This is really an extension of planning. If done properly, this will take a few weeks of work for a new restaurant. The key is to go through your list and look at the different models for the needed equipment that are out there. Yes, it is OK to look at the new models because you ...
Purchasing equipment for a restaurant is a daunting task. There are three phases to successfully purchase restaurant equipment. The first is planning, see How to Purchase Equipment for a Restaurant – Planning Phase for more information about this phase. The second is research, go to How to Purchase Equipment for a Restaurant – Research Phase for ...
The Internal Revenue Service is acutely aware of the volume of tip income generated in the United States. Therefore they are shifting the compliance aspect of this income onto employers. This is a direct result of our government’s need for more revenues including Social Security and Medicare taxes.
In the restaurant business, alcohol is the single best margin generator. If you are going to have a profit, this is where the money is made. As an owner, you need to understand the value of alcohol sales and the associated costs. This aspect of operations not only generates high contribution margins, it covers its share of costs ...
A well organized and understandable restaurant profit and loss statement can provide infinite value to a restaurant owner. The best format to use allows the owner to understand his prime costs, total variable costs and the required contribution number necessary to cover fixed costs and desired profit.
In the mid 90’s, the Internal Revenue Service created an audit guide specifically for pizza establishments. Today, this guide along with the Retail Industry Guide, specifically Chapter 4 which covers the examination techniques for the food service industry is used to audit the typical family style pizza restaurant. If you own a pizza restaurant, this article ...
Many of you are wondering if you can make a good living as a mobile food vendor. If there is profit, how much? Are there any issues in this industry that will persuade me from becoming a mobile food vendor?
