Happy Birthday!

This cake is given to you by your

customers
• BUT, you have to share your birthday
cake.
• One slice for the employees
• One slice for suppliers
• One slice for the landlord
• One slice ……
• One slice ……
• One slice for you! (hopefully)
 Your slice
• Is it big enough to satisfy you?
• Could you have a bigger slice?
• Could other people’s slices be smaller?
• The only option you do not have is to eat
the whole cake yourself!
The Profit and Loss Statement
 The P+L Statement
It is more than a
list of results, it is
the grade on your
final exam!

It is an evaluation of our work………

….and an evaluation of the
restaurant
 Different levels of Profit
+ Sales
- Cost of sales
= Gross Profit
- Salaries
= Profit on Prime Costs
- Operation expenses
= Gross operating Profit / Dept. profit
- Overhead expenses / Taxes
= Net Profit
• The P+L is the story of your business,
complete with pictures and anecdotes.

• Learn to read the stories the numbers tell

you, see the pictures and remember the
anecdotes.
 Variances
• The difference between what was
expected and what really happened
• Some variances have more meaning when
express in % than in currency – some the
other way around.
• Some variances should be looked at from
both sides
• Some variances have meaning only when
expressed in % points
 Analyzing the results
• Actual results
• Actual vs. budget
• Actual vs last year / last month
• Variances
• Reaction

• Revolving forecast
 Reaction
• It is not good enough to hope, change has
to be planned in response to what we
have learned!

• The responsibility of the manager is to

take steps to continuously improve the
results.
 Methods of Analysis/Variance
report
Categ. Budget % Actual % Var. Var.
Fr. %
F. Sales 750’000 100.00 785’000 100.00 35’000 4.67

FC 225’000 30.00 247’000 32.59 2.59

Gr.Pr. 525’000 70.00 538’000 67.41 13’000 (2.59)

Sal. 247’000 32.93 261’000 33.25 14’000 .32

GOP 162’000 21.60 176’000 22.42 14’000 .82

Covers 32’500 33’100 600 1.85

Av. Chk. 23.08 23.72 .64 2.77