Taste Buds Restaurant

Imagine you are owning and managing the Taste Buds Restaurant (no, imagine for now, it is the next best to actually owning and managing!) which is a 40 seater restaurant serving soups, salads, entree, desserts and select beverages.

The restaurant is located in a vibrant part of New Yore (yes, “Yore”) City.

All your learning of restaurant profitability concepts in the 6 Restaurant Profit Recipes product will be with reference to the Taste Buds Restaurant which you own and manage. I can already imagine your taste buds tingling and the smacking of your lips. Great Start!

You will begin the process by creating a menu of food and beverage items (be a Chef so to say), perform Menu Engineering analysis. (Turn into a finance guy) You will learn first hand how to create a Sales Mix (Profit Recipe 1) which will boost restaurant’s revenues and profits.

Second, you will learn about contributors to revenue for the Restaurant with particular reference to the price. Pricing (Profit Recipe 2) is one of the most powerful factors impacting revenues. You will learn about price leadership and resistance and then how to adopt pricing strategies that will boost profits.

Third, you will understand the relationship of restaurant revenues with its inventories. Inventories (Profit Recipe 3) influence both revenues as well as costs thereby impacting profits a great deal. You will optimize your inventories to boost profits. You will learn what to hold and what to sell.

Fourth, you will learn how to identify the break even level for the restaurant. Break Even Level (Profit Recipe 4) allows you to know at what point of covers served or revenue achieved you will equal first your fixed costs and then total costs. This Profit recipe literally determines the profit potential of the restaurant.

Fifth, using revenues, costs and profits of the restaurant, you will determine how much of the revenues flow down to the profits also known as Profit Flow Through (Profit Recipe 5). Profit Flow through lets you know whether and how much of your additional revenues are resulting in additional profits.

Finally, utilizing all the key concepts you have learned in this course relating to your Taste Buds Restaurant you will identify the Key Performance Indicators (or KPIs) (Profit Recipe 6) of the restaurant. These performance indicators relate to revenues, costs and profits.