1. What is Restaurant Profit & Loss?

Profit & Loss (P&L) is a financial statement that summarizes the revenues, costs, and expenses incurred during a specific period for a restaurant business. It shows the ability of the restaurant to generate profit by increasing revenue and reducing costs.

2. How Does the Calculator Work?

The calculator uses the basic P&L formula:

Where:

• \( Income \) — Total revenue from food, beverage, and other sales ($)
• \( Expenses \) — All operational costs including food costs, labor, rent, utilities, etc. ($)

Explanation: A positive result indicates profit, while a negative result indicates loss.

3. Importance of P&L Calculation

Details: Regular P&L analysis helps restaurant owners understand financial performance, identify trends, make informed decisions, and plan for future growth.

4. Using the Calculator

Tips: Enter total income and expenses in dollars. Use accurate financial data for meaningful results. All values must be non-negative.

5. Frequently Asked Questions (FAQ)

Q1: What should be included in restaurant income?
A: Include all revenue streams: food sales, beverage sales, catering, merchandise, and any other income sources.

Q2: What are typical restaurant expenses?
A: Common expenses include food costs, labor, rent, utilities, marketing, insurance, equipment maintenance, and loan payments.

Q3: How often should I calculate P&L?
A: Monthly calculations are recommended, with more detailed quarterly and annual reviews for comprehensive analysis.

Q4: What's a good profit margin for restaurants?
A: Typically 3-5% net profit is considered good for full-service restaurants, while fast-casual establishments may achieve 6-9%.

Q5: How can I improve my restaurant's P&L?
A: Focus on increasing revenue through marketing and menu optimization while controlling costs through inventory management and operational efficiency.