The creator provides a transparent financial breakdown of his restaurant's performance. He starts by comparing their projected first-year sales against their actual sales based on the first three months, showing they are exceeding expectations. He then explains the two key strategies they used to achieve this: increasing volume by making burgers bigger while lowering prices, and diversifying the menu to drive repeat visits. After a reality check about costs, he details their average monthly expenses like payroll and rent, revealing their net profit margin is around 8-10%, which is being used to repay investors. He concludes by outlining future growth plans, including delivery services and new menu items, while addressing both his supporters and detractors.
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Running a Restaurant. Episode Three, “Money Pt. 3” - produced by @goodobject.co
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We’re not shy to tell you everything. Our intent is not to boast or act like we know it all - it’s to be transparent about our experience so far as rookies in this industry.
Top-line revenue is important but is only a minuscule portion of the larger picture; we are learning to negotiate pricing on everything, trim the fat on unnecessary spending, and strategically invest in beer/wine or bottling sauces or whatever can generate more revenue with the same or less labor.
We aren’t ignorant of how lucky we’ve been, and we’re equally aware that our luck can easily run out. All our respect to every restaurant who has done this for years, in a city/industry that feels like a daily uphill battle.
We can’t control our sales numbers, but we can control our commitment and effort every single day. We’re not here to be good; we want to be great, so that’s what we’ll keep striving towards.
Special thanks to those who love raining on other peoples’ dreams online…… keep it coming
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Song by Bad Bunny, “NUEVAYoL”
Transcript
Alright. We'll tell you exactly how much our restaurant makes. A few months back, we shared that our goal was $2,000,000 in the first year of our restaurant. Are we doing it? Here was our realistic projection for our first year, and here's how we're actually doing best on our first three months. We feel eternally lucky, but also really proud. We've worked our butts off to get to this point. So how do we do this? Two things. First, we made our burgers bigger and lowered our prices by a dollar because we're in the volume game now. We also added a combo meal at a really affordable price, knowing that fries and tots are way higher margin. Second, we diversified our menu. We added a Caesar salad, breakfast burritos, hot chick sandwich, Caesar wraps, just to drive repeat visits from my guests throughout the week. Tier tot. Thank you. So are we rich? No. We're not. Payroll, rank, cost of goods are higher than we anticipated. Even though coming into a second gen space saved us a ton of money, the repairs on this equipment have been crazy. So after all that's accounted for, we'll maybe net 10%, and we're not touching any of that money just just so we could pay our best back. French fry. But where do we go from here? We introduced DoorDash for delivery. We're considering soft serve or milkshakes as dessert options. Soon enough, we'll bring merch back as well. To everyone who thought we couldn't do it, thank you. And to everyone who thinks we've hit it big, relax. We haven't made it yet. Alright. I'm done. Is tier anyone near me? Hello. Alright. Cool. We'll have some coffee.
