Profit and Loss
• Gross Profit often
referred as GP.
• Is the profit made after
the deduction of
materials cost ie. food
cost .sometimes
reffered to as Kitchen
Profit or bar profit
• Net Profit = Net sales –
Material costs,Labour
costs and overheads.
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Materials 30%
Labour 30%
Overheads 20%
Net profit 20%
Labour costs
• Wages and Salaries
paid to employees.
• Employer National
Insurance
contributions.
• Employer Pension
contributions
• Bonus Payments
• Staff meals
Overhead costs
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Rent
Rates
Insurance
Professional services
Repairs
Printing
Stationary
Uniforms
Laundry
Capital equipment
Marketing and advertising
Break Even analysis
• Fixed costs,are costs that
remain the same
irrespective of sales volume
eg rent rates professional
fees .
• Semi fixed costs that move
in sympathy with, but not in
direct proportion to sales
volume e.g. fuel costs,
telephone and laundry
• Variable costs in proportion
to the volume e.g. food and
beverage costs
example
• Restaurant capacity 180
• Enabling 10,800 covers
per 28 days lunch and
dinner
• Average spend £15
• Maximum sales = 151,200
• Fixed costs 35,00 per
period
• Variable costs 40% (max
60,480
• Break even point3,889
covers
Essentials of control
systems
• Menu Planning,Historical
data shows popularity and
profitability
• productioncontrol,deter
min sales and production
reduces wastage
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Stock Management
Purchase ordering
Menu analysis
Financial
management reports