Restaurant Managers 2 hr seminar outline
Restaurant Manager's Online Seminar
How to Understand a Restaurant Financial Statement and Identify Possible Problems
This course is designed for restaurant managers and owners who do not have an accounting or financial background, but realize that the ability to read and understand restaurant financial statements is key to restaurant success. For CPAs, this course will help you explain restaurant financial statements to your clients.
This course is designed to help you:
1. Read and understand the restaurant balance sheet and profit and loss statement and their interaction.
2. Identify problem areas on the profit and loss statement.
3. Be able to calculate the significant restaurant financial ratios.
4. Become familiar with the typical restaurant financial statement and the meaning of the various numbers.
5. Recognize the importance of prime cost.
6. Review sample general expenses.
7. Understand depreciation.
8. Calculate the additional sales required to create a desired profit.
9. Become familiar with how bartenders steal and how to prevent it.
1. Balance sheet
Understanding its importance and making sure it is correct
2. Statement of Income and Retained Earnings
Purpose and difference from balance sheet; how to set it up properly so you can compare your restaurant with others.
3. Restaurant sales
How to calculate and categorize sales and various sales ratios
4. Cost of goods sold
How to calculate cost of goods sold and various cost ratios; understanding the accrual basis of accounting.
5. Labor cost
The different categories and ratios that will help identify potential problem areas; e.g., too much labor--back house, front of the house, managers.
6. Prime cost
The key to determining a restaurant's viability; How to calculate; How rent affects prime cost; Why we look at prime cost rather than cost of labor and cost of goods sold individually.
7. General Expenses
How to look at and question irregularities within general expense categories; How to compare with national averages.
8. Understanding Depreciation: How it affects the P&L
9. How to Perform a Financial Checkup on Your Restaurant
Tools to help you analyze your restaurant; Why profits aren't higher; Which numbers are out of line.
10. Determining the amount of additional sales needed to break even or to create the profit you want
11. How Bartenders Steal and How to Prevent It
12. Sample Statistical Information
Food cost and labor cost guidelines for different types of restaurants.
Appendix A Sources of Restaurant Financial Information
Appendix B Uniform System of Accounts
Appendix C 101 Ways to Steal
Appendix D Answers to Questions