Why Restaurants Need a Budget
Do you ever wonder why restaurants need a budget? Do you run your restaurant based on your gut? You can’t do it anymore – the risk is just too great. Watch this video to learn why restaurants need a budget and why budgets are so important.
Why restaurants need a budget, why they’re so critical:
1. A budget takes you from being a reactive management team to a proactive management team.
2. A budget ensures that you know what your financial goals and targets are. This allows you to examine how you are operating, determine what systems you have in place that people are not using and what systems you need to put into place to change your bottom line.
3. Budgets are the keystone to being profitable on purpose, rather than just being lucky.
Your budget is your plan to success. You stop being reactive – you are proactive, making changes to ensure your food cost stays on track, that your labor cost stays on track. You also use your budget to measure budgeted against actual.
A budget helps you plan for profitability. You don’t hope you’re successful – you plan for it.
I am a broken record at times, repeating the same messages over and over again. I know it! Certain messages are that damn important. I teach that the two most important systems any restaurant should have in place are a restaurant budget and recipe costing cards.
You know what two systems most restaurants never have in place? Budgets and recipe costing cards! The number one reason I hear is, “They’re too hard.” I usually answer back with, “waaaa, waaaa,” the sound of a crying baby.
It’s not that I don’t care. It’s that it’s an easy excuse to not do a budget and also to set yourself up for failure.
You put your restaurant at risk, your income and your employees’ income at risk when you ignore the important step of putting a budget in place.
If you want to learn more about why restaurants need a budget and to get a budgeting template, read our free special report, Breaking Away from the Insanity: How to easily take control of your restaurant and make more money. Download it here. Be sure to visit our YouTube channel for more helpful restaurant business management video tips.