Let’s use Billy B’s example and convert it to percents using Billy B’s 20% rent percentage as a base:
Sales Tax 9%
Food Cost 30%
Paper Cost 8%
Total Costs 102%
You’ll loose money every month unless one or more of the controllable expenses is reduced. The only Major
Expenses that can be controlled significantly are Rent & Labor. You can control Food Cost and Paper Cost a little bit, but the biggies are Rent & Labor.
So if your Rent is $3000 and the rent factor is 20%, you would need $15,000.00 in sales a month just to pay the rent. It your average sale is $5.00, you would need to sell 3000 units,( Hot dog-Drink-Chips) in a month OR approximately 100 units a day.
$64,000 Dollar Question—–Can you sell more than 100 units a day?
If not, you would loose 2% every month!
Something needs to change—Sales, Rent and/or Payroll or FAGITABOUTIT!
[:0] Oh, and by the way, there will be other expenses not listed above like Repairs, Licenses, Insurance, Cleaning Supplies, Trash Removal, Utilities etc. Those above are just the Basics!