Today I'm speaking with Anne Napolitano from Naplitano Consulting that offers an array of accounting services to the restaurant, food & beverage sector.
Have you ever romanticized about owning a restaurant? Wonder what goes into the price of menu items at your favorite date night spot? Anne shares her expertise on accounting and finance for restaurant owners and food enthusiasts who want to learn more about the business.
About Napolitano Consulting
What's most interesting about Anne is her energy and passion for the hospitality industry. As you'll find out, Anne was a professional chef before hanging up her apron for a calculator. Combining her two passions has really made a difference for her business and her clients.
In my experience, most chefs and creative people don't get a lot of pleasure out of "talking numbers." With the number of restaurants that close every year, having your finances in order can prevent unnecessary expenditures and make sure you're accounting for all your expenses outside of food costs.
Here are some of the questions covered in this week's episode of the Big Food Talk. To signup for updates and exclusive giveaways for listeners to support Long Island Restaurants visit us here: https://bigfoodtalk.com/what-should-restaurant-owners-consider-financially/
How Do You Finance a Restaurant?
Anne tells us how difficult it can be to obtain financing which is why many restaurant owners turn to leveraging personal assets or borrowing from friends and family if they can't find an investor.
What Startup Costs Do Restaurants Have?
From the lease to building out your dream space, the costs add up quickly. Anne offers some recommendations on how restaurants can save money on startup costs as well. It comes down to a lot of the hidden costs restaurant owners and its customers don't consider when they think about why the cost of dining out is so expensive.
How Much Profit Can a Restaurant Make?
Would you believe restaurant profit margins are in the single digits? Food costs are upwards of 25% but the almighty bar tab can contribute upwards of 80% margins which is why during the COVID-19 pandemic, restaurants have clamored to reopen their bars and open container laws were loosened to allow for liquor sales in NY State.
What Types of Reports Should a Restaurant Be Looking At?
Anne suggests the biggest consideration is making sure the data gets inputted on a regular basis whether it's an Excel spreadsheet or an application such as Quickbooks. By delaying keeping on top your revenue and reporting, you could be delaying any underlying problems your restaurant may have financially.
There is so much more information Anne has to offer on finances for restaurant owners. The key to all of this as a business owner is making sure you understand your finances from the start., keep your reporting up to date and if that's not possible find a professional like Anne to help you get setup and take that burden off your plate so you can focus on what you do best.