How to make financial project of the restaurant? P&L for a startup

The financial project of a restaurant, cafe and other public catering formats ( HoReCa ) is the basis of the restaurant business. It allows you to make decisions about the payment schedule and the forecast of costs and profits. Based on financial project data, you can plan marketing activities, payroll changes, process modernization, and scaling opportunities.

What is needed for project development:

1. Data on the main groups of the target audience. In order to be able to predict how many times they will visit the institution and how much money they will leave. That is, we take 3 groups and simulate the loading of the institution for a week. By time, by the number of people and by the amount of the average check.
2. Data about the rates , which do not change or change slightly depending on the amount of loading of the establishment. Rent, utilities, software, payroll, advertising, loans, etc.
3. Cost data. Costs that depend on the amount of food and drinks sold.
4. We build a table that has three columns – minimum, optimum and maximum.
5. We fill in three groups – profit, cost price, fixed costs. The cost price should be at the level of 25-35% of the profit. Profit and fixed costs are calculated according to the data on the possibility of loading at the maximum, optimum and minimum. Please note that the wage fund and utility services may change in parallel with the volume of loading (if the establishment has more than 20-25 seats).
6. Summarize on three columns and get data on income or loss based on one month.
7. The next step is to scale the table by 12 months. Here you need to pay attention to seasonality and take into account loading. Seasonality affects the availability of the facility’s infrastructure, summer playgrounds, location, etc. Depending on the concept of the establishment, you build a loading schedule and plan income and expenses.
8. And now you finally receive the financial project of the institution for the year. Now you can plan your return on investment and profits. Also, if you have a working facility, it will enable you to plan for scaling and make timely decisions regarding cost optimization.

We can manage what we can measure. Therefore, this financial report is the basis to which various divisions of the business are involved. Such as marketing, recruiting and operational management. Business consists of numbers, and they are easy to understand.

If you need help in developing and implementing a financial project ( Profit and losses ) use the link to our site as a “Consultation” service