What It Costs To Run a Restaurant

Many (probably most) of your employees think you're making a LOT more money than you really are. And it can affect their attitudes, behavior and what they feel entitled to.

Use this video to give your people a sense of what it actually costs to operate a restaurant. They'll see that it's a lot more than they ever imagined and they'll learn that the restaurant is not the cash cow they thought is was!

[scoobydog]

Yes that's why everyone is under paid. Think about the freezers running 24 hours a day. If your closed 1 day a week, that's 4 days a month with zero income. It all ads up. People run restaurants because they love people and they love food.

[themaestro]

Hmm... I guess that's why Subway only gives you 2 napkins.

[d.lawrence]

Anyone who doesn't TRULY want to run a restaurant for the love of it has just left the room. Which is a very good thing.

[kingringo]

Four minutes. Straight to the point. It doesn't take twenty minutes to break this down. Great video!

[DanielIles]

This is an awesome breakdown. I think that being upfront and honest with your employees can help a lot to improve moral and not have them misunderstand that you are making a killing from having them at minimum wage

[edwardladrera]

Here Is again a spoiler of restaurant business. I have 4 restaurants and I am getting rich. Yes my dear, I AM GETTING RICH BY THE DAY. I am opening another branch this January and another by March 2019. I cannot understand why you are discouraging people to go into restaurant business. People have to eat. Restaurant business is definitely the most safe business in this planet. I have two restaurants that are adjacent to each other and both are earning.

[sleepycobra]

I was thinking about opening one
Now I changed my mind

[huybui]

I am a restaurant staff and now I am also learning English, so this video is really helpful for me

[clintontriplett]

I have been cooking since I was 15 and I am now 24 and love cooking hopefully I can afford my own place some day

[rogermason]

Thanks for posting this video! Last year I watched this before starting my own restaurant. The problem I ran into though was not having the money to get a location with high foot traffic. Here in Taiwan the price of a good location can be pretty expensive. After doing a whole lot of research I was able to met a restaurant finance manager Mrs Kathleen who taught me some skills and strategies on her platform where i got some good amount of money. I was able to start up my own restaurant with a nice location and recipes here in Taiwan been so blessed ever since i met Kathleen she is my mentor

[marcosh]

This explains why everyone that works for restaurants is very underpaid

[fustibal]

This is one of the best videos I have seen on the restaurant business.

[cateringcoachal]

The 4-minute video did an excellent job of explaining the importance of cost optimization and efficient resource utilization to run a restaurant. Thank you so much! 🙌

[erl]

i hear what you’re saying but i have a few comments. as a foodservice consultant who advises on back end issues and operations management, i can tell you that most restaurants do not properly account for their costs and pass them on to customers appropriately. i have saved many small restaurants tens of thousands a year by implementing simple cost solutions including adequate menu pricing and cost accounting. it’s hard work, but that’s why i have a business in this niche. accounting for costs and passing them properly into your asking price alleviates much of this cost pressure. q factors like the cost of linens, dishwashing, use of utilities, and to go containers, even labor (partially) should be applied to your asking prices in a methodical way, which increase the value of your sales. most owners DONT do this, and those are usually the more draconian whiners about the cost of this or that. as a matter of fact, these people tend to actually over value their services and charge too much by shooting from the hip. in those cases they are complaining to their labor unjustly, and are just plain dishonest about their poor spending. it’s not the fault of the workers that these types don’t know how to manage money, they are their own worst enemy AND they’re jerks about it!

[derjukee]

The stressing of supporting your employees in this and your other videos is such a welcome change compared to other videos I've seen. Most others give it an afterthought or no mention.

[markj.ashwin]

Whoa! That was good. I love the idea of being more open with staff about a restaurant's operating costs. And profitability?

[nicholasgergetz]

That's still not the portion that owners or investors take home directly. Much profit is reinvested into the company in efforts to innovate or to expand, or it's stored away in financial investments to be saved for a rainy day so that market turbulence doesn't kill the company. Profit margins need to be comfortably higher than zero or the company risks going under, either because they weren't prepared for temporary economic downturns or their competitors were innovating faster than them.

Plus, profit is also the incentive needed for entrepreneurs to leave whatever options for work they currently have and take the risk of starting a business. The larger the prospective profit margin, the more secure they will feel about starting the business

The bad rap that certain political factions give to profit is very damaging. Profit is critical to economic growth for the reasons I have just described.

[jorgecampa]

I wish everyone that works I the restaurant business, can appreciate such a great video that emphasizes the fact that you as an employee should look at the business as your own. Why? Because if the service staff is careless and losses silverware in the trash and does not care about the business then everything goes wrong. Restaurants are giving people an opportunity to make a living as long as they protect their livelihood. I worked as a server for many years. I always said to myself if the investor is not making a profit I don’t have a job.

[bkkthaiuk]

Thank you very much for sharing. This is very useful for those who wish to run a restaurant and great for hospitality students.

[mojotex]

Challenge accepted. I’ll be back in 5 years