Turn sales into a useful picture
Sales alone do not tell you whether a business is healthy. Subtract food, labor, occupancy, utilities, fees, and other operating expenses to understand what remains. Use the same period for each number.
Watch prime cost
Prime cost combines cost of goods sold and labor. Because both can move with sales, watching them together helps you see the impact of purchasing, scheduling, and menu decisions.
Work toward break-even
Break-even sales are the sales required to cover fixed costs after variable costs. Model more than one scenario and include all recurring expenses. Review results with your accountant before making major financial decisions.
This guide is for educational purposes and is not financial or legal advice.
