A restaurant profit and loss (P&L) statement is a financial document that provides a snapshot of a restaurant's financial performance over a certain period of time, typically a month or a year. A typical restaurant P&L statement includes the following sections:
- Revenue: This section includes all of the money the restaurant brought in during the period in question, including sales from food and drinks, catering, and special events.
- Cost of goods sold (COGS): This section includes the cost of ingredients and other food and beverage-related expenses such as napkins, cups and cutlery.
- Gross profit: This section calculates the difference between revenue and COGS. It represents the profit made from the sale of food and beverages before expenses are subtracted.
- Operating expenses: This section includes all of the expenses the restaurant incurred during the period, such as labor costs, rent, utilities, marketing, and insurance.
- Net profit: This section calculates the difference between the gross profit and the operating expenses. It represents the restaurant's overall profit or loss for the period.
- Revenue: $100,000
- COGS: $30,000 ( 30% of revenue)
- Gross profit: $70,000
- Operating expenses: $50,000
- Net profit: $20,000
It is important to note that a P&L statement is not just a report of financial performance, but also an important tool for restaurant owners and managers to monitor their operation's financial health and make informed decisions about how to improve it.
It's a good practice to regularly review the P&L statement and compare it to previous periods and industry benchmarks, to spot trends and identify areas for improvement. Additionally, it can also be useful to break down expenses into further detail and track them separately, such as labor cost as percentage of revenue, marketing cost, etc. This can provide more insights into where the money is going and whether there are opportunities for cost savings.