Explain the purpose of a profit and loss statement and how to read it,
describe how to analyze and troubleshoot costs of goods sold line items, including comparisons to industry averages and standards to understand an operation’s financial performance, and
Explain what is involved in forecasting and building a food and beverage budget.
Profit and Loss Statements
A profit and loss (P&L) statement reflects food and beverage revenues and costs during a specified time and allows the operator to evaluate the business operation. It is a powerful tool that will influence future decisions on how to improve an existing process, where to cut costs, or if menu changes are required.
It is important to know the step-by-step process and format of preparing a P&L statement. Once completed, the job of analyzing the information to see if the business is profitable begins. To do so, the operator needs to know how to read the P&L statement correctly.
