The restaurant industry is very competitive and staying afloat is dependent on proper budgeting skills. Operational requirements regarding food inventory and guest demand have a significant hand in cash flow. A budget gives a directional pointer towards success. The budget should be based on previous actual records and should be revised occasionally.
A few tips on restaurant budgeting NYC:
Manage your cash flow wisely
A restaurants cash flow is the cash coming in through sales versus the cash being spent daily. Budget for the fixed expenditures first such as rent, utilities, and salaries. These costs are constant and cannot be forgone. Next, plan and account for variable costs such as food inventory costs. If you have a credit agreement with the suppliers, pay on the due date. Take advantage of discounts given based on early payment.
Keep track of your inventory
Suppliers have a knack for offering volume pricing on products; don’t get carried away. Consider the shelf life of these products and the possibility they could spoil before getting used. Secondly, consider the guest flow; this translates to the actual volume of product used in a day. Be careful not to sacrifice your cash flow.
A handy trick would be to stock inventory on a daily basis. Get creative with promotions to make use of ingredients that are in danger of going to waste.
Set up deposit policies
If your restaurant offers catering services strategically design your deposits to include a deposit policy for cancellations. In instances where you have spare rooms or outdoor space that is hardly used, tap into it and host special events such as fundraisers, networking events and parties. This will create a subsidiary cash flow that will help run other expenditure or simply act as savings.
Always seek to save on expenditures
Invest in energy saving and efficient appliances such as efficient light bulbs and low flowing faucets. Keep an updated menu with the right prices. Get rid of the dishes and food items that do not sell.
Restaurant budgeting in NYC may be a little elusive at first, but with effort it is achievable. Budgeting ensures profitability levels are at an all-time high and an impressive cash flow system is maintained.