MCA Accountants Pty Ltd’s Post

According to the National Restaurant Association, the average restaurant profit margin is 5% before taxes, but the average range tends to fall between 3% and 5%. However, the actual margin will vary based on a number of factors, including: Operating expenses, Cost of goods sold (COGS), Interest on debt, Tax burden, and Restaurant type.

Restaurant NOP: Rule of successful restaurant expenses used to be the 30/30/30/10 breakup. With 30% for labor costs, 30% for food costs, 30% for overhead, and 10% in net operation profit (NOP) If any of your expenses running out of these percentages, then you are losing money.

Do you know what it costs to put a plate of food in front of a customer? Here's why we need to understand and how a restaurant can control their rising food costs! https://lnkd.in/dxyzXs3R #FoodCostMustFall #restaurants #throwbackthursday #pointofsale

Can ITC on beverages(soft drinks) be availed by the restaurant service providers ? Bare perusal of Rate Notification No. 11/2017 would persuade a restaurant service provider to restrict credit of input tax charged on goods and services used in supplying such restaurant services. However, upon strict interpretation, it can be construed that rate notification no. 20/2019 -Central Tax (Rate) w.e.f. 1.10.2019 no longer provides restriction on such supplies. Moreover, proviso to Section 17(5)(b)(i) allows ITC in respect of beverages where such beverages are used for making an outward taxable supply of beverages or as an element of a taxable supply or COMPOSITE OR MIXED SUPPLY. Mere change in form that was earlier in a bottle and now served in a glass should not change the substance of the goods supplied, hence ITC shall be ELIGIBLE. Please note : I haven't mentioned anywhere above about the never ending debate on "Whether ITC restriction can be provided through Rate Notification or not ?" Disagreement to the above views are encouraged !

What are your options when your restaurant managers are required to manually calculate, distribute and track the cash tips payments that they send to their tipped employees? In the case of Ultra Steak, the decision was easy - implement fee-free electronic tips with Instant Tips. Read the case study to learn more about how they streamlined their tips process and saved money in the process. Taking Tips Electronic – A Case Study with Ultra Steak | Instant Financial https://bit.ly/4c0d2FL

Controlling restaurant costs is one of the biggest challenges for restaurateurs. Not only do you have to manage many costs—but you have to do it while dealing with inevitable price increases. Whether it’s food cost increases due to inflation or a labor cost rise due to rising minimum wage, cost increases, like taxes, are guaranteed in the restaurant industry. Whether you want to learn how to calculate & understand your prime costs or get an idea of what it takes to open a restaurant, check out our ultimate guide: https://lnkd.in/d5gCRiq

You know, running a restaurant is all about keeping things balanced, right? Well, that's where we come in. At Nikko, we're all about making sure your numbers add up, so you can focus on what you do best – making mouths water with your amazing dishes. Whether it's tracking expenses or planning for the future, we've got your back. Think of us as your behind-the-scenes support crew, making sure your finances are as smooth as your sauces. So, why stress over spreadsheets when you could be perfecting your recipes? Let's team up and take your restaurant to the next level together. info@nikkoos.com 978-321-3216 #Accounting101 #BookkeepingBasics #FinancialManagement #OutsourcingSolutions #SmallBizFinance #TaxTime #BudgetingTips #CashFlowManagement #VirtualBookkeeping #AccountingServices #ProfitMaximization #BusinessInsights #FinancialPlanning #ExpenseTracking #AuditPrep #PayrollProcessing #TaxSeasonReady #CloudAccounting #StartupFinance #EntrepreneurialFinances #resturants #restaurant

You may ask yourself, should I run that special? Many restaurants decide to run a special before calculating how it will impact their bottom line and Gross Profit Margin. Although specials will absolutely increase your turnover, it is important to make sure that you still make sufficient profit on these sales. Often giving away an item with a low food cost but high perceived value like a dessert or a drink when a customer purchases a high-margin, high-ticket price item like a burger works well. Want advice on specials ‘Best Practice’? We are here to help. Register with Fynbos and enjoy our Premium Service for yourself 👉https://bit.ly/3Llkq1g #fynbosaccounting #accounting #accountingservices #accountinglife #accountingsoftware #xero #dext #simplepay #accountingsystem #accountingandfinance #accountingfirm #accountinghub #accountingsolutions #capetownbusiness #SME #supportlocal #foodandbeverage #hospitality 

To run a profitable business, restaurants need to calculate their profit margin and know how to improve it. To equip restaurants with the know-how to become a financial success and serve their community for years to come, here’s an overview of ways to calculate, control and improve a restaurant’s profit margin: https://bit.ly/3LVSbch

Here is how costs have increased in restaurants since February 2020: - Food +29% - Labor +31% - Occupancy +12% - Supplies +20% - Swipe fees +32% - Utilities +16% Restaurants' average pre-tax profit margins are 3-5%. Therefore, given the above cost increases, you must have increased your menu prices by 26.2% since February 2020 to maintain your pre-pandemic profit margins. It shouldn't be a surprise that average menu prices increased 27.2% between February 2020 and June 2024. Here is how your menu price increases have affected your profitability, assuming traffic didn't change: - Zero price increase = from 5% profit to -20% loss - 20% price increase = from 5% profit to break-even - 26.2% price increase = maintain 5% profit Check out the complete calculation and explanation from the National Restaurant Association below. #restaurants #financials #cfo #controller #accounting #hospitality #restaurantmanagement