Why a Restaurant Profit and Loss Statement Is Important

Have you ever wondered what a restaurant profit and loss statement is and why it's important to your restaurant business? Watch this video, or continue reading below, to find out.  

Let’s make an assumption that you take a picture of the business (a balance sheet) on the last day of each month. That picture has changed from one photo to the next. Things happened to make those pictures change; deliveries were accepted at the back door, customers came and purchased your products, people worked and were paid, and so on. A profit and loss statement (P&L) is like a movie showing all of those things happening on a daily basis. Simply put, a P&L is a moving picture or movie that shows everything that went on in your restaurant between the times you took the photos.

You get your P&L statement, flip to the end to see how much you've made or lose, and say, "Oh, crap." What does it mean to you? Have you ever combed through it to see if it's accurate? Does it make...

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