Excited about my NEW collaboration with Luna Rossa Restaurant & chef Andre Gainer! We’ve partnered to complete a cost, margin & contribution analysis for their Fall menu launch.  Nice to know but not exactly sexy you say?  I’d say launching a NEW menu any other way would be insanity. Here’s why…

• Theoretical plate costs will help Andre identify concerns BEFORE the menu goes live
• The Gross Profit Margin review will confirm menu selling prices are appropriate & deliver the necessary levels of margin
• Measuring sales contribution will confirm which menu items drive profitability, and which ones should be repriced, redesigned or potentially removed

These basic accounting practices help operators “plan for profitability” so day-to-day activities can center around enhancing the customer experience.

1. Commit some time to run the numbers each week
2. Compare sales mix data with other metrics like inventory, bar sales & labor costs
3. Monitor, control and adjust

The ONLY way to operate profitably is to run the numbers. Run them early & often. Break out the calculator and empower everyone on the team!