We at One Fat Frog help you in so many ways to get your restaurant going. After you pick up your equipment and you get your restaurant in order, you’ve got to start figuring out what you’re going to spend money on. And since running a restaurant is such an expensive proposition, you need to think about your controllable expenses, or the money that can change for the better based on how well you run your business. In fact, if you watch a lot of those reality shows (like I do) about failing businesses, you often times see that they don’t work with their controllable expenses well, so do it right, and you get a good business plan, and your business will prosper. Here’s what you must know:
-Costs of sales: these are your food and beverage costs. We’ve discussed putting together your menu and how much each item can cost; if you control this, you can have a successful business. You would also include other items, such as T-shirts and other souvenirs, in this category.
-Payroll: this is what you pay your employees. Any cost involving people, including benefits, taxes, and insurance, falls under this category.
-Direct operating expenses: this fun, complicated phrase is all about other things you’ll spend money on, including uniforms, linens, paper supplies, cleaning supplies, and on and on.
-Music and entertainment: got a sports bar with lots of TV’s? Book live bands? This is that expense.
-Marketing expenses: you control how you want to do marketing and how much you want to spend, but you’ve got to get the word out there somehow. Keep that in mind.
-Energy and utilities: water, electricity, gas, and all those other simple things you don’t think about to keep your restaurant running.
-General or administrative: if you get office supplies for your business, it goes here. Phone bills also go here. Also, professional fees like an attorney go here too.
-Repairs and maintenance: Stuff breaks, stuff needs to get fixed, this is where you put this one.
Again, these controllable expenses can go up and down depending on how well you put your business together and run your restaurant. Do it the right way, and you’ll find these costs go down and that means your profits can go up.
One Fat Frog Restaurant Equipment
One Fat Frog • 2416 Sand Lake Rd. • Orlando, FL • 407-480-3409
www.onefatfrog.com
www.onefatfrog.tumblr.com
www.facebook.com/OneFatFrogRestaurantEquipment
www.twitter.com/#!/onefatfrog