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Submitted By cheyennemapeso
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Restaurants have a bad rap in the business world. Economist like to point out the high failure rate of new restaurants- estimates including two out of three restaurants close in the first year, or three out of four close in the first two years, and so on and so on. A major problem why \ new restaurants don’t make it past a few years is that owners and managers don’t know how to handle the day-to-day finances. Knowing how to manage cash flow, understanding a restaurant’s daily business review and keeping payroll and inventory under control are all essential parts of managing the day-to-day finances of any restaurant.

The following are the rules that Cafe Mamias is engaging in order to manage their finances

1. Restaurant Daily Business Review
The ytrack food and beverage sales on a daily basis. It can help analyze sales trends, payroll costs, customer counts and predict future sales. For example, when thinking about Christmas promotions, staffing and menu specials, the cafe can review the daily sales from the previous year, looking for trends to help them plan for this year.

2. Understanding Restaurant Cash Flow
Cash flow is the amount of cash coming in versus the amount of cash going out of your business on a daily, weekly and monthly basis. If you don’t understand this basic concept of restaurant finances, you put yourself at great financial risk.

The Cafe properly budgets for upcoming expenses such as utilities and food orders. They don't rely on credit for more than a week from suppliers to buy food. This will help prevent them from over buying food and spending more cash than they need to.

3. Keeping Payroll Under Control
Restaurants and Cafes need enough staff to give excellent customer service, but they don’t want to over staff. Overstaffing creates two problems- you pay more and servers make less in tips. So Cafe Mamis constantly refers to their daily

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