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Do you own a restaurant and want to make sure it’s profitable? If so, then understanding your Profit & Loss (P&L) statement is essential. But what exactly goes into a P&L? How do you calculate it? And how can you use this information to improve the profitability of your restaurant?
These are all questions that we’ll answer in this post. We’ll explore how to read and interpret a P&L statement, as well as provide tips for improving its performance. So if you’re ready to take control of your restaurant’s financials, keep reading!
What Is A P&L?
A Profit & Loss statement is a financial report that breaks down your restaurant’s income and expenses. It gives you an overview of your business’s performance over a specific period, usually one month or one year. The P&L shows how much revenue you’ve made and what costs have been incurred in order to generate that revenue. It highlights areas where money has been spent, helping you keep track of spending patterns and identify possible problems with profitability.
How To Calculate Your Restaurant’s P&L
In order to calculate your restaurant’s P&L, you’ll need to start by gathering all the relevant data from the past accounting period. This includes sales figures, cost of goods sold (COGS), payroll expenses, and any other operating costs. Once you’ve gathered this information, you can start calculating your restaurant’s P&L by subtracting total expenses from total revenues. The resulting figure is the net profit or loss for the period.
Tips And Strategies For Improving Your Profit & Loss Statement