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Help please

post #1 of 10
Thread Starter 

hey Guys/Gals

I was hired as a GM of a new rest that avergage income is 30,000 in net income (average) and i have no food cost what so ever it has only been opened for about 5 months and there is no papper work what so ever not even a labor cost so i watched to see what i am spending and it seems to be about 2000 a wk and my labor is about 2500 a week could some one point me in the right direction please to start this tracking i have been a gm and food and beverge manger in many places but they had some type of tracking when i got there already...

 

 

Kevin

post #2 of 10

What do you mean it seems to be?  First you need to get exact numbers.  Go back for the last six months and get the exact numbers.

post #3 of 10
Thread Starter 

Ok....the average income is 30,000 net a month and the food orders generate around 2,500 a wk

post #4 of 10

So according to your vague figures your food income is 1/3 of total. If your spending 2000.00 on food and your labor is 2500.00 total expense of just these 2 things is 18000.00   Not Good  This does not include taxes, payroll taxes, insurance, garbage removal etc. or does it. Sit down write every expense down then figure it while you still can. Since you have no PAPPER work.Good Luck

Chef EdB
Over 50 years in food service business 35 as Ex Chef. Specializing in Volume upscale Catering both on and off premise .(former Exec. Chef in the largest on premise caterer in US  with 17 Million Dollars per year annual volume). 
      Well versed in all facets of Continental Cuisine...

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Chef EdB
Over 50 years in food service business 35 as Ex Chef. Specializing in Volume upscale Catering both on and off premise .(former Exec. Chef in the largest on premise caterer in US  with 17 Million Dollars per year annual volume). 
      Well versed in all facets of Continental Cuisine...

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post #5 of 10

What is 30000 "net income"? 

 

33.3333% food cost and 33.3333% labor leaves you 33.3333% for everything else.  According to some research I've done recently, the National Restaurant Association, food cost is 36-37% average.  However, that is high for most restaurants.  Your labor seems high unless your owner is paying himself more than he's worth.  I believe labor average is around 25%.  If YOUR salary isn't included in that $2500/week, you're in trouble. 

 

post #6 of 10

Has to be 30K gross

post #7 of 10

I don't understand your punctuation or question. Quick Books?

post #8 of 10

I'm concerned that you're over your head, unless GM means something other than general manager.  The restaurant needs to bring someone in who knows numbers and you do not seem to be a numbers guy. 

 

The basics of accounting seem to be missing from your skillset. 

 

Revenue minus expenses equals profit.  You don't know WHAT your expenses are, so without knowing that, you have no way of determining profit (or loss).  You need to determine what your costs are now, look for ways to contain those costs, if not reduce them, and budget going forward.  However, I'm afraid you're over your head here.

 

The fact that you chose "owner/operator" over "restaurant manager" for your level, seems to indicate that you're more interested in the titles and don't really have the right experience.  An "owner/operator" means you OWN and manager the place.  I don't mean to be rude, and some of the comments above mine do seem to be more interested in picking than helping.  However, we're all getting the "vibe" that you're not to the point of being ready for "guidance" as much as needing basic training.  If that's the case, you need to be honest with the owner that you're over your head.  Perhaps the owner is willing to invest the time necessary to train you, but for now, you're simply blowing the guy's money if you can't even determine what your expenses are. 

post #9 of 10
Quote:
Originally Posted by russokr View Post

hey Guys/Gals

I was hired as a GM of a new rest that avergage income is 30,000 in net income (average) and i have no food cost what so ever it has only been opened for about 5 months and there is no papper work what so ever not even a labor cost so i watched to see what i am spending and it seems to be about 2000 a wk and my labor is about 2500 a week could some one point me in the right direction please to start this tracking i have been a gm and food and beverge manger in many places but they had some type of tracking when i got there already...

 

 

Kevin



Your answers is right in your post:

 

1) You were hired as a GM to find out your costs

2) You were hired to initiate controls and procedures

3) You were hired to initiate a tracking system

 

Now, the question remains:

What kind of a rstaurant owner would start up a business without these controls and procedures in place from day 1, and who was running the show from day 1?

 

As with the others, I guess I sound harsh and  snotty. 

 

To me, your post sounds like meeting a pretty girl who driving  a brand new Corvette, and she pulls over to ask me walking down the street "Hey, can you show me how to shift into 3rd?"

...."This whole reality thing is really not what I expected it would be"......
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...."This whole reality thing is really not what I expected it would be"......
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post #10 of 10

It's difficult to pull the necessary facts from your posts to give you a real assessment.  You're leaving out too much, and I suspect you mean something different by "net income," than an accountant might. 

 

I gather what you're saying is that you've been hired by a restaurant which doesn't really keep books; that your former experience is limited to working in restaurants which already had well established accounting systems; that you have no experience in initiating a system and feel overwhelmed. 

 

If the first three suppositions are right, no wonder you feel overwhelmed. 

 

You need to assess your own capabilities immediately.  If bringing in one of the systems you can work is really too much. you'll have to hire an accountant to set one up for you.  Even if it's someone who does no more than install basic software inventory and accounting programs (like Quick Books) and hand holds until you are comfortable using it, under the circumstances it's not a bad idea.  The most important thing is to get control of the numbers ASAP.

 

And don't let people make you feel bad about it, either.

 

BDL

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