How to Make a Restaurant Profitable

Running a restaurant is more than just making and serving food to customers. It’s about managing the daily operations and cost control in order to make the business profitable. Without understanding everything about restaurant services, the business end of a restaurant can quickly spiral out of control, and a potential profit may turn into a loss instead. Enlisting the help of a company who can assist with the organizational end of the business can keep a restaurant from going into the red.

Daily Operations

A restaurant, like any business, needs to have a plan of action on a daily basis. This includes scheduling, purchasing, inventory control, cash management, food cost, updating the menu, attending to accounts payable, balancing the budget, reconciling bank statements, managing taxes and creating financial reports. There is a lot of busy work involved with keeping a restaurant operational, as well as meeting the quality control standards that keep customers happy and bring them back.


Making a profit is the goal for any restaurant. One of the most important parts of meeting this goal is to keep the food cost and labor in line. Once these amounts have been decided upon, the budget should be strictly adhered to. Not staying on top of these 2 items can cause the profit margin to sharply decrease in a very short amount of time. Inventory should be taken regularly to see if too much of any one product is being used on a daily basis. If so, the employees should be directed to pay attention to the amounts being used. If not, then the cost of goods may have increased. If this is the case, then the menu prices may need to be adjusted to offset the cost, or it may be possible to locate a new supplier who may have better prices.

Maintaining quality control comes along with keeping all other daily operations in place. A smooth running restaurant will have happier employees, and they will provide better customer service in return. Leaving the paperwork to someone who can keep all aspects of the business end in line will allow the management to concentrate on serving a quality product that will make customers want to come back.