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OperatingFree Online Demo

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Occupancy costs may be fixed or semi-variable, and are usually noncontrollable (not influenced by management) Depreciation and interest are also noncontrollable.

RESTAURANT OPERATING COST CONTROL

Operating expenses are controlled by comparing actual expenses to budgets.  Budgets should consider the variable and fixed component of each expense type 

Direct operating expenses are involved in the service of customers, and usually are controllable.

Direct expenses are usually not 100% variable with sales.

Purchases of china, small wares, and menus are often cash flow decisions more than budgeted expenses.  

Utility and R&M expenses should vary with sales, but they are semi-variable, not 100% variable.

A marketing plan should include a detailed budget and an expected return to measure effectiveness.

G&A expenses should be defined and budgeted.  Spell out the process if allocating overhead for several units. 

Direct Operating Expenses 
    Linen Rental
    Uniforms
    China and Glassware
    Kitchen Utensils (small wares)
    Menus
    Contract Cleaning
    Flowers and Decorations
   

Utilities

Repairs and Maintenance

Music and Entertainment

Marketing

General and Administrative 

Occupancy Costs

Depreciation

Controllable OE:

Breaking down operating expenses into fixed and variable components makes it possible to calculate daily breakeven levels

Noncontrollable OE:

We can show you how to use daily and weekly Breakeven and week-to-date Profit Reports to manage operating expenses 

Don't wait until the end of the month to calculate operating profit.  Weekly and month-to-date operating reports with breakeven help your managers understand the profit picture and the cash flow status of the restaurant