Use this free restaurant P&L template for Excel to keep a pulse on your restaurant’s financial health.
Whether you run a tiny cafe or a sprawling family-style joint, a restaurant P&L template is essential to ensure your finances are on track. A profit and loss statement, often referred to as a P&L statement, is a financial document that details the revenues, costs, and expenses incurred by a business during a specified period of time (often a quarter or a fiscal year). In short, a P&L statement provides a snapshot of a business’ ability or inability to generate profit.
While this is a crucial financial document, putting this information together can be a bit overwhelming if you’re a first-time restaurateur. In fact, a restaurant profit and loss statement is just one of many financial documents you need as a business owner to keep track of how you’re doing financially.
That’s where our free restaurant P&L template comes in handy. Designed specifically for Excel and Numbers, this restaurant profit and loss statement template will help you take the first steps toward creating this key financial document.
When you first open the restaurant P&L template, some of the information may be familiar. A P&L statement is similar to a cash flow statement in that it details changes in accounts over a set period of time. This is different than a balance sheet. In contrast, a balance sheet highlights what a business owns and owes at a single moment.
To start using your free restaurant P&L template, the first thing you’ll enter is your sales (your revenue). This is also known as the top line. From your revenue, you’ll subtract the costs of doing business, which include the price of day-to-day operating costs, cost of goods sold, labor costs, and more. The difference between your revenue and your business costs (the bottom line) is net income. This is also referred to as your profit or earnings.
It’s important to point out that when using this restaurant profit and loss template in Excel or Numbers, you’ll need to specify the specific period of time you’re trying to measure. While most P&L statements are used on a quarterly or annual basis, you can also use them weekly or monthly. It’s a good idea for restaurants to generate a profit and loss statement regularly because unexpected operating costs or major fluctuations in sales are common occurrences that can easily throw your finances off track.
Regardless of what period of time you’re analyzing, the data you provided in the template will help you calculate key data and financial points about your restaurant. By keeping an eye on these numbers, you can then make key financial decisions. For instance, if your food costs are creeping up, it might be time to get rid of some low-margin menu items.
At the end of the day, this restaurant P&L template is a must-have for any restaurateur.