Why Your Resturant Needs to do a Day Part Analysis [Breakfast, Lunch, Dinner]

Do you know if you are profitable for breakfast, lunch, dinner or late-night every day of the week at your store?

A day part analysis is a great way to answer this question. Once you go through this exercise you might discover that it does not make sense to be open for lunch on a Tuesday for example.

Start with your Point of Sale

To start,  your point of sale should give you a day part breakdown for each day. It should also tell you how much labor was incurred for that day part considering your staff is clocking in to the POS.

Next, look at your P&L

Next, you will need to take a look at what your food cost percentage and operating cost is on your P&L.  We suggest using your year to date percentage number.

Analyze your profitability by day part

Once you have these pieces you will be able to analyze profitability. You will have actual Sales and actual Labor, drop in your food and beverage cost typically 30% of sales drop in Operating Cost typically 30%.

SALES – (30% Labor/30% F&B / 30% Operating Costs) = 10% Profit

What’s left is profit. If you are consistently at a deficit for a certain daypart you might find you are actually more profitable if you are not open during that time.

If you have questions or would like more information on how to effectively bolster your bottom line please give us a call (619) 588-2411.