{"id":11103,"date":"2020-01-02T15:18:28","date_gmt":"2020-01-02T13:18:28","guid":{"rendered":"https:\/\/www.become.co\/blog\/?p=11103"},"modified":"2020-03-04T14:16:02","modified_gmt":"2020-03-04T12:16:02","slug":"restaurant-budgeting","status":"publish","type":"post","link":"https:\/\/www.become.co\/blog\/restaurant-budgeting\/","title":{"rendered":"How to Create a Restaurant Budget to Manage Finances & Costs"},"content":{"rendered":"\n\n

Order up!<\/span><\/p>\n\n

If you own a restaurant, then you know how important it is to learn how to manage restaurant finances. Restaurant budgeting isn\u2019t part of an a la carte menu – it\u2019s an absolute must.<\/span><\/p>\n\n

After all, if you don\u2019t perfect your restaurant cash management skills, the industry can quickly chew you up.<\/span><\/p>\n\n

Feeling the heat? Get your bearings with this in-depth guide on restaurant finance management.<\/span><\/p>\n\n

What is a restaurant budget?<\/span><\/h2>\n\n

A restaurant budget is a financial limit that you determine is healthy and sustainable for your business.<\/span><\/p>\n\n

Be careful not to confuse your restaurant budget with your restaurant sales forecasting, which is a prediction of how your sales will perform within the boundaries set by your restaurant budget.<\/span><\/p>\n\n

Whether you need to <\/span>purchase or lease equipment<\/span><\/a>, <\/span>recover your business after a disaster<\/span><\/a>, get up-to-date on restaurant technology trends, or any other business expense – you\u2019ll need to factor those costs into your restaurant budgeting plan.<\/span><\/p>\n\n

[bctt tweet=”Restaurant budgeting is not fool-proof, no matter how detailed your restaurant cash management plan is. Running a #smallbusiness is complex – but it gets easier with the tools in this guide!” username=”Become_co”]<\/p>\n\n

That said, restaurant budgeting is not fool-proof; no matter how detailed your restaurant cash management plan is, there will eventually be unexpected costs that come up at some point.<\/span><\/p>\n\n

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Side note:<\/b> When your restaurant is facing a financial squeeze, having access to <\/span>same-day business loans<\/span><\/a> can make all the difference. If time is less of a factor, take a few minutes to get familiar with the variety of <\/span>business loans<\/span><\/a> that are at your disposal. There\u2019s no harm in staying prepared!<\/span><\/p>\n<\/blockquote>\n\n

Why do I need a restaurant budget?<\/span><\/h2>\n\n

You need a restaurant budget for the same reason that you would lay out any budget: to be certain that you don’t stretch your finances out too thin.<\/p>\n\n

If you don’t have a restaurant budget plan, then you’re essentially driving with your eyes shut. Maybe you have an idea of where you plan on arriving, but without a budget, your business is morely likely to crash and burn before reaching that goal. A restaurant budget isn’t just keeping your eyes on the road, but can act as a GPS to help you reach your destination.<\/p>\n\n

Okay, enough with the analogies.<\/p>\n\n

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The bottom line:<\/strong>\u00a0You need a restaurant budget to ensure that your business is able to stay ahead of shifting operating expenses, keep earnings above expenditures, and keep the business growing. If you don’t have a restaurant budget, your business is operating on borrowed time.<\/p>\n<\/blockquote>\n\n

Restaurant Budget Spreadsheet Example<\/a><\/strong><\/span><\/p>\n\n

\"Restaurant<\/a><\/p>\n\n

Guide to creating a restaurant budget<\/span><\/h2>\n\n

If you\u2019re not sure about how to get started with your restaurant budgeting plan, use the following steps to establish a foundation that you can then build on.<\/span><\/p>\n\n

8 Step guide to restaurant budgeting:<\/b><\/p>\n

1. Define your restaurant\u2019s costs<\/span><\/h3>\n

The first step of how to manage restaurant finances is to know what your expenses are – for restaurants, specifically, those expenses can vary greatly. Here are a handful of potential costs that your restaurant may have on a normal basis:<\/span><\/p>\n\n