Welcome to the Restaurant Metrics Workbo

As a restaurateur, your metrics are your greatest weapon. By analyzing them closely and
regularly, you will be able to attribute specific actions you have taken (like hiring a new cook o
removing an old menu item) to specific results. Metrics are your way of knowing whether your
restaurant's performance is improving, worsening, or staying the same.

Passion, creativity, and determination are must-haves in this industry. However, if the numbers
don’t add up, they won’t mean much. To stay fully operational and improve your restaurant, it’s
imperative to dig deep into these numbers.

But that’s easier said than done. Let's face it – you’re a restaurateur, not a math professor! We
get that. That's why we’ve compiled this workbook for you, composed of sheets to help you
determine your:
Break Even Point: The point in time – or dollars – at which will you will earn back your
investment.
Overhead Rate: The cost of running your restaurant on a per-hour basis.
Employee Turnover Rate:How quickly you are losing restaurant staff.
Cost of Goods Sold: The amount of money you spend on food and drink that leave your kitch
Labor & Prime Cost: The total amount spent on both labor and Cost of Goods Sold.
Gross Profit: How much you have left over.

This workbook is designed so you can work step-by-step through each sheet. Here are some
quick pieces of advice before you venture on:

• It’s important to pick one period of time as you go through this workbook (i.e. one week, one
month) and stick with that same period. Otherwise, your numbers will clash.

• We strongly advise against entering numbers where formulas are present in the cell. This will
impact the final numbers for each page and give you an inaccurate picture of your restaurant’s
performance.
• Some of these cells are shaded. Do not enter anything into these
cells!
With that, get your numbers together and let’s get to work!

Once you're finished with the sheet, make sure to sign up for your free demo of Toast POS! O
built-in data makes it simple for restaurants to analyze sales reports and calculate important
business metrics like these.

So what are you waiting for? Click below to get your free demo of Toast POS!
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Break Even Point
Break even is the first metric for a reason - it's one of the first metrics you should consider if y
restaurant!
This number is a huge selling point for investors. They'll want to know at which point you'll ma
the red to the black on your financial statements and when they'll earn their money back.
Your final answer in the break even formula, in dollars, will be how much money you must ea
start earning a profit.
Once you figure out your break even sales amount, you can break it down in further steps to
food you need to sell, how long it will take to reach this point, etc.

Break Even =Total Fixed Costs ÷ ( Total Sales - Total Variable Costs)
Total Sales

To calculate break even, first enter your total fixed costs. These are the charges that do
not vary from order-to-order and are typically paid as a flat fee.

Advertising/Marketing Costs $0.00

Depreciation of Materials $0.00
Wages/Salaries of Non-Hourly Workers $0.00
Mortgage Interest or Rent $0.00
Construction and Repairs $0.00
Renovations $0.00
Other Fixed Costs $0.00
Total Fixed Costs $0.00

Now, calculate the variable costs in your restaurant. These

costs are associated with what is sold, like food and
takeout containers.

Total Variable Costs $0.00

Finally, enter your total sales for the period

Total Sales $0.00

Voila! Your Break Even Point is... #DIV/0!

To read more on break even point, click here!

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Variable Costs)
Restaurant Overhead Rate
Another form of cost accounting, overhead rate is the total of all indirect business costs for a
specific time period divided by the number of hours in that time period.

After all, not every cost in your business is directly traced to a menu item. Don't you still have
pay the same for electricity if you sell 10 steaks or 40?

Overhead Rate = Total indirect costs for a specific time period

Hours in that time period

Indirect Costs: Your Cost If the numbers you entered were for a
month, submit how many days were in
Advertising/Marketing Costs $0.00 that month.
Depreciation of Materials $0.00
Wages/Salaries of Non-Hourly Workers $0.00 Ex: enter '28' for February and '31' f
Mortgage Interest or Rent $0.00 # of Days >
Construction and Repairs $0.00
Renovations $0.00 Now, enter how many hours you are
open per week.
Supplies Your Cost # of Hours >
Cleaning Supplies $0.00
Cooking & Kitchen Supplies $0.00 Finally, enter how many days of the we
you are open
Services & Utilities Your Cost # of Days >
Internet/Telephone/Cable $0.00
Heat, Gas, Electricity, and A/C $0.00 Your Monthly Overhead Rate is…
Professional Cleaning/Window Washing $0.00
Inventory Tracking System $0.00 $0.00
POS Fees $0.00 $0.00

Fees, Fines, & Taxes If the numbers you entered were for a
Professional Membership Fees $0.00 year, your Yearly Overhead Rate is...
Total Taxes $0.00
Total Indirect Costs $0.00 $0.00
$0.00
$0.00
$0.00
Once you have all the information in there, go ahead and adjust to find out ways you can lowe
your overhead rate.

For example, see how costs are affected by changing around how many hours/days
you'll be open by adjusting that number.

Or, see how much you'll have to earn per hour to offset your manager's new raise. Let's
say they want an extra $500/month, or $6,000 per year. Add that number to the "wages"
tab and see the difference!

To read more on Restaurant Overhead Rate, click here!

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Restaurant Employee Turnover
Your business' employee turnover is a huge indicator of its success behind the scenes.
When it's too high, that means something is either wrong with your staff or with the way
your restaurant is run.

Below, calculate your restaurant's turnover rate and see how it compared to the industry avera

Employee Turnover = Lost Employees

Avg. Number of Employees

Enter the following numbers for a set period of time (month, quarter, year, etc.) - just be consis

Total Employees to Start: 0

Total Employees to Finish: 0
Total Employees Lost: 0

Employee Turnover #DIV/0!

The average turnover rate for the hospitality industry is 66% - how does your restaurant comp

To read more about ways to lower your turnover rate and keep staff around, click here!
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es your restaurant compare?

Restaurant COGS (Cost of Goods
Sold)
Your COGS is your way of knowing how much inventory you went through,
in dollars, for a specific time period.
This helps give insight on your inventory metrics. It's sometimes helpful to
break this metric up by food and drink, or even type of food and drink.

Cost of Goods Sold = Starting Inventory + Newly Ordered Inventory - Ending

Inventory

Enter how much inventory you had left over from the previous period $0.00
Enter how much inventory you purchased for this current period $0.00
Enter how much inventory you had left after this current period $0.00

This is your total Cost of Goods Sold for the period of ti $0.00

To read more about restaurant performance metrics, click here!

oods

ntory - Ending
Restaurant Labor Cost
Labor and Prime Cost are both included on the same sheet because labor cost influences
prime cost.
Your labor cost is the summation of all employee wages and salaries for a given period,
including overtime!

Labor Cost
Hourly Wages $0.00
Non-Hourly Salaries $0.00
Bonuses $0.00
Overtime $0.00
Payroll Tax $0.00
Benefits/Other $0.00

Total Labor Cost $0.00

Prime Cost
Your Prime Cost is simply your labor and your COGS added together.
Below is the COGS you calculated in the previous sheet. If you are
working with a different COGS, enter that number in manually.

COGS $0.00
Prime Cost $0.00

Prime Cost is often compared to gross sales, where it is expected to be

between 50% and 60% of sales - try not to go too low or too high!
Enter your restaurant's sales here $0.00
Your Prime Cost compared to Sales #DIV/0!

To read more about restaurant Prime Cost, click here!

bor cost influences

r a given period,
Restaurant Profit
Curious how much you earned in a certain time period? Of course you are.
Let's see how much your restaurant pulled in after factoring in the cost of food!
Keep in mind, this is Gross Profit. Net Profit, which factors in all
of your costs, can be calculated below!

Gross Profit is your earnings after your COGS. It does not

factor in tax, interest, or other expenses like wages.

Gross Profit = Total Sales - Cost of Goods Sold

To calculate gross profit, enter your total sales for a given per $0.00
Now, enter your COGS from the same time period in this
cell:
(Note, this pre-populates with your COGS from the previous $0.00
tab. If it is a different number for this period, enter it
manually.)
Gross Profit = $0.00

Curious how the rest of your metrics impact your bottom line?
Download Toast's Restaurant Profit & Loss Statament!
t of food!
Next Steps
Restaurant metrics are crucial to track constantly. If you don’t, you could lose focus on your
restaurant goals and get consumed by unhelpful numbers.

Luckily, there’s a solution that lets you track your numbers all in one place. From labor, to sale
reports, to inventory, Toast POS is the all-in-one restaurant management platform that makes
running a restaurant easier for those of us who don’t have a Ph.D. in Accountancy.

As a modern point of sale, Toast in intuitive for everyone in the restaurant to learn. Its true
cloud-computing capabilities allows you to see real-time data from anywhere, anytime. Not to
mention, it integrates with loyalty and in-house online ordering to save you money and earn
more profit.

Want to see this revolutionary restaurant technology in action?

Click here to get your free demo of Toast!
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