Key Number for Restaurant Operations

 In 1. David Scott Peters, The Numbers, Tip of the Day

By David Scott Peters

Restaurant Tip of the Day

Find your breakeven point to avoid breaking the bank.

Do you know your breakeven point? I bet your accountant does. And you should, too. Breakeven analysis is used to determine exactly that: how much in sales the restaurant must generate to break even. Knowing your breakeven point doesn’t tell you when you’ll make money or be profitable, but it can tell you if you can afford that new marketing idea, payments on a new range, or to hire that additional server. Through examination of your fixed and variable expenses, you can see the impact of changes in these expenses.

David Scott Peters is a restaurant expert, coach, trainer and speaker, specializing in systems for independent restaurant owners. He is the nationally acclaimed restaurant coach whose unique “SMART Systems” approach to boosting profits has earned him the title of, “The man who can walk into any restaurant in America and find $10,000 in undiscovered cash before he hits the back door – Guaranteed!” Visit for more.

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