Accounting and Financial Analysis: Restaurant Operations Analysis


Restaurant Operations and Financial Analysis

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Jeff Hufford, CPA wants to help you as a restaurant owner achieve bottom-line success through a financial and operational review of your restaurant(s). With experience gained from years in the restaurant industry, Jeff brings extensive knowledge of the industry's best practices.

In general, the basic steps in our review process may include:

  1. Establishing a baseline of current profit margins
  2. Examining processes and controls regarding expenses -- with focus on food, beverage, and labor costs
  3. Presenting recommendations for consideration
  4. Implementing controls and operational changes to boost profits right away (and in the future)
  5. Measuring and reporting results

Results Example
As an example, the Potential Profit Increase chart (PDF document) shows that given a 3% savings in food cost, 3% savings in beverage cost and 3% savings in labor cost (relatively conservative numbers given the starting point of this example), a $50,000/month restaurant could save more than $4,000 a month ($49,000 annually) without any increase in sales. In this example, the operation is moving from a 6% operating income (average) to a 14% operating income (outstanding for the industry). Imagine the possibilities given some tweaks in managing your own operation.

All contents copyright Jeff Hufford, CPA, LLC, 2013. 512.467.0070 | email:
Austin, Texas Accountant