Guides
Plain-English how-tos with formulas, worked examples and free tools
Guides
Restaurant money guides
Plain-English how-tos for independent restaurant owners: the formula, a worked example, what a normal number looks like, and a free tool to work out your own. Every figure has a source.
Card fees & payments
Processing fees, statements, surcharging and how to negotiate.
- How to read your merchant statement, line by lineEvery card fee is interchange, a card-brand fee or your processor’s markup. Here is how to find each one on your statement and what to question. · Tool: Statement Fee Auditor
- Flat-rate vs interchange-plus: which is cheaper for a restaurant?Flat rate is simple; interchange-plus passes on the real cost of each card plus a markup. Here is how they compare in dollars and when each makes sense. · Tool: Processing Fee Calculator
- Dual pricing vs surcharging vs cash discount: what’s the difference and what’s allowedThree ways to pass card costs to guests, with different rules. Here is what each looks like on a $30 check, what Visa allows and what to check in your state. · Tool: Cash Discount & Dual Pricing Calculator
- How to negotiate lower card processing fees (with scripts)You can negotiate your processor’s markup and fees, not interchange. Here is how to prepare, what to say, and how to check you got what you agreed. · Tool: Negotiation Playbook
Costs & margins
Prime cost, food cost, waste and break-even.
- Restaurant food cost percentage: formula, example, and how to lower itFood cost percentage is the cost of food sold divided by food sales. Here is the formula, a worked example, plate costing and how to bring it down. · Tool: Food Cost Gap Calculator
- Is DoorDash or Uber Eats worth it? Delivery margin mathA delivery order is worth it when it keeps about what the dining room keeps. Here is the formula, a worked example and the break-even delivery price. · Tool: Delivery App Profit Calculator
- Actual vs theoretical food cost: how to find the gapTheoretical food cost is what food should have cost; actual is what it did cost. Here is how to work out both and find where the difference goes. · Tool: Food Cost Gap Calculator
- How to calculate prime cost (and what a healthy number looks like)Prime cost is your food and drink cost plus your labor cost. Here is the formula, a worked example, and what a healthy number looks like. · Tool: Prime Cost & Margin Advisor
Bar program
Pour cost, inventory and drink pricing.
Staff & labor
Labor cost, scheduling, tips and retention.
- The real cost of staff turnover in a restaurantHiring, training and the slow first weeks add up. Work out what one departure costs you, and how to keep good people longer. · Tool: Staff Retention Checklist
- Labor cost percentage and sales per labor hour (SPLH)Labor cost % shows whether labor is in line with sales; SPLH shows how hard each labor hour works. Here are both formulas with weekly and hourly examples. · Tool: Staffing & Labor Cost Calculator
Operations & compliance
Health inspections, food safety and daily routines.
- How to set a private dining minimum spendPrice a private room so an event never earns less than a normal night in the same seats, plus what to agree in writing. · Tool: Private Dining Minimum Calculator
- Health inspection prep: what inspectors check and how to get readyInspectors focus on temperatures, hands, cross contamination, sanitizing, sick staff and who is in charge. Here are the key rules and how to prepare. · Tool: Food Safety & Inspection Checklist
Opening a restaurant
Budgets and numbers for new openers.
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