Profits from your place

We currently are doing a ton of business but profits are at an all time low with the increase of everything…including your salary how much are you able to draw out? and where are your %

currently we are doing 10k / wk average…not even opened a year yet

Help is much appreciated

Here’s what we run and how those numbers would break down at $10,000 per week:

Food - 28%
Labor - 21% (including payroll taxes)
Advertising - 4% (ish)
Credit card fees - 2%

Variable costs are therefore 55%, leaving a 45% contribution margin.

We have about $11,500 in monthly fixed expenses (including General Manager)

$10,000 per week is about $43,500 per month.

$43,500 times .45 is $19,575.

After paying fixed costs, that leaves $8,075 per month, or $96,900 per year. That’s total cash flow to the owner. You have to pay yourself a “market” rate for your services, so you’re going to lose some of that to payroll taxes. That also assumes no debt service, which probably isn’t realistic for most of us. Our restaurant is 4 years old and we’re still paying off debt from the first 2 years of losing money.

Food, Paper, Supplies: 29.5%
Labor including all taxes and unemployment 31% (Includes general manager and bonuses at ~45K)
Rent 9%, Utilities 1.5%, Marketing 5%

Profit to owner: 16%

profit… whats that? :cry:

everythings skyrocketed so much over the past year, plus the increase in electric and gas bills, we’re just barly breaking even. :evil:

Our expenses are up too. We concentrated on a round of portion control, tightened up our coupon expense a little. Raised the delivery fee.

Sales are up about 50K over last year. Maybe half of that is the price increase we put in place last December.

Food cost is up about 1% of sales. Coupon “expense” is down about 3%. With a 50K increase in sales, profit is up maybe 5K. Orninarily I would have expected about a 20K increase on that kind of sales growth.

Oh man…the funniest thing. I saw the post topic Profits from your place, and groaned. Thinking I dont even want to see what people are saying profits are like, when I dont have any…and wouldnt you know. I click on it and my whole computer starts hacking and freezing, I had to shut down the whole system. I think it was choking! :shock: Seeing as this is the computer that holds all the info on our numbers, it is very aware of our business, lol!! Poor little computer, you almost killed it with that post! Shame on you!

Lol, but we are still in business after a year, so cant complain right…lol

IF it wasnt for the huge increase in energy I would be doing great!!! I have worked hard to keep in line with food. I went over my whole menu and took out things that had very low profit margin and raised my prices accordingly. WE COUPON excessively!!! but when we do I have learned its the dotted box that sales. you know we did an experiment with taking our gourmet pizza mailed out a coupon that had our original price on it and we still got great response. ITS ALL ABOUT PERCEPTION. you dont have to give away the store. just group things together for one price and you are in a lot better boat then discounting