More information to include in a Profit & Loss Statement
Cost of Goods Sold
The cost of goods sold (COGS) metric, or sometimes referred to as cost of usage, records the amount of money you spend on food ingredients and beverages that you supply to your customers.
To understand how the COGS works, you must calculate how much you end up spending on inventory to fulfill your sales transactions to your patrons.
Restaurant Labor Costs
The wages and salaries of all your staff, from your head chef to your waiters, will determine your labor costs.This category offers significant cost containment opportunities. Labor costs can be improved with knowledge of a required resource allocation to demand, continuous improvements in productivity – employee, or physical components of the business, e.g., labor saving equipment, optimized floor plans, etc.
Occupancy Expenses
These costs or expenses include the nuts and bolts of running your business, which includes property taxes, utilities, interest, depreciation, rent and waste removal. Keep in mind to carefully review your leasing agreement, because some expenses may vary where others like the waste removal may be a fixed cost. Another thing to be on the lookout for is possible unforeseen expenses like equipment, or even building, repairs that are a necessity to the safety and success of the business.
