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RESTAURANT P&L
(PROFIT & LOSS)
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P&L

This topic will tell you about the restaurant’s financial progress, and you will be able to know about
understanding the profit and loss statement which is called P&L statement.
This financial tools will assist you in reflecting your sales and costs during certain period of time.
This restaurant P&L topic will also help you in creating a restaurant P&L report.
You will get to understand the numbers and restaurant’s profitability through financial reporting.
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What is profit and loss statement

A profit and loss (p&l) statement is a monetary statement that tell you about the financial
health of your restaurant in a set period of time.

When should we do P&L

The restaurant p&l statements can be done weekly, monthly, or yearly. The reason for weekly
statements are advice so you can keep track of what is most profitable or costly to your restaurant
each week. This helps you to do changes immediately in order to control the food cost. 
Monthly P&L is mandatory in order to understand the performance of your establishment so that
you can apply some strategies and work on your food cost to bring your p&l in profitable state.
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What are the components in P&L

The restaurant P&L statement consist of 5 main components/sections:

• Sales (Revenue) Breakdown

• Costs breakdown: Cost of goods sold (COGS)
• Labor Costs
• Operating Costs
• Net Profit or Loss
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Revenue:
In this section, you should list out all of the items that contribute to your total
sales. It is the profits you earn from selling items and goods to your customers.
Make sure that you break down all your source of sale/revenue into smaller
section like, food, beer, wine, others(tobacco), etc.

Cost of Goods Sold:

• The cost of goods sold (COGS) is the amount of money you spend on food
ingredients and beverages that you supply to your customers.
• The cost of goods sold (COGS) is the total cost of your food and beverage
inventory for a given time period. 
• You should know your ending inventory in order to understand the COGS.
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Labor Costs:
• The wages and salaries of all your staff, from your head chef to your waiters,
will determine your labor costs.
• The key element to controlling your restaurant labor cost is to understand how
many employees you need to keep in the organization for service. And this will
determine your P&L.
• If you want to have profitable business the labor cost is very important. You
should not end up with so many staff standing on the floor doing nothing and
still you are giving wages from your pocket.
• So make sure have a proper control on staffing.

Operating Costs:
Restaurant operating expenses include everything involved in your daily
operations, such as supplies, repairs, and marketing. There are cost which are
called fixed and variable.
Fixed cost are like waste removal, rent etc. and variable cost are like gas,
electricity, guest supplies, cleaning supplies etc.
Net Profit/Loss:
In this final section you will get to know your performance of your restaurant over the
designated period of time. Your revenue definitely needs to be higher than all of your
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combined cost .
Here is some examples of what a restaurant P&L statement may look like:  
Restaurant Calculations for Your P&L Statement: L&S
Some restaurant calculations are mentioned below, which will help you to calculate the cost of Learn & share
goods sold, food cost percentage, total gross profit, and net profit and can help you create your
profit and loss statement.