Cost Benefit Analysis for a Restaurant

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Cost Benefit Analysis for a Restaurant | tinobusiness

So you are interested in opening a restaurant? And possible to project income and expenditure restaurant to determine whether you can expect to make a profit. The cost-benefit analysis provides an estimate of the profitability of your business.

Revenue Estimate

Estimated income to determine the number of guests that the restaurant will host, and most importantly, the number of customers who are believed to be based for each meal period. Develop an average account per customer per meal period – each part is called a day, and the average check is usually different for each part of the day. Now, multiply the number of customers who will have to every day apart from the average total income account.


Food and beverage

The real cost of food or drink (what you pay) divided by the sale price of the property (which charges the customer) equals the percentage of the cost of goods. For example, let’s say a hamburger with all the trimmings costs $ 1 and sell for $ 5. Then, the cost of products is 20 percent. The price of the menu items and get a cost of goods for each item. For a true cost of the assets, it is necessary to estimate how much of each product you sell, multiplied by the cost of goods.


Labour cost

Now comes the cost of their waiters, cooks, hosts and others who run the restaurant. Add all this together and the cost of labor is obtained. Figure all rounds and add to payroll taxes, workers’ compensation, and Social Security.


Employment Cost

How much will rent your building or occupy the space for the restaurant? If you own the building, you may want to use the cost of a mortgage. If you rent, you will use the rental costs. Other costs include taxes, utilities, and expenses associated with the operation of your restaurant space. Add these together to get the cost of employment.


Finalize Analysis

Now you are ready to evaluate the profitability of your restaurant. Add all expenses and subtract from your estimated income. The key is profitability, so you want to make sure that the benefits outweigh the costs. Make sure you have covered all expenses, reviewing the profit and loss account as a checklist. For example, statement, see the reference section.


 

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