Running a restaurant, café, or bar isn’t just about great food, drinks, and service – it’s about making sure the numbers stack up.
The most successful hospo business owners aren’t guessing or trusting their gut; they know exactly what their numbers are telling them.
Our resident business coach, James O’Connell, who’s supported hundreds of hospo venues, puts it this way:
“Less than 5% of F&B owners apply the financial discipline needed to stay profitable. Most end up losing tens of thousands each year.”
The good news? It’s completely fixable with a clear view of your key numbers.
Here’s The Big 5 you need to track to keep your business healthy and profitable:
1. Net Operating Profit — aim for 15%
Your Net Operating Profit (net of all expenses) shows you whether your business is making a healthy return.
Target 15% or greater — that’s a strong indicator you’re on a sustainable path.
This is a key number whether you’re running a restaurant, a small bar, a wine bar, or a café.
2. COGS (Cost of Goods Sold) — keep it between 22–25%”
Food and beverage costs can spiral if you’re not careful.
Keep them within 22–25% of sales to protect your margins without compromising quality.
3. Operational Wages — should sit under 25–35%
Staff pay is a major expense.
Target 25–35% of sales to make sure you’re rewarding your team while retaining profits. That’s whether you’re running a restaurant, a cafe, or a small bar.
4. Overheads — cap at 25% annually
Your overheads (rent, energy, subscriptions, repairs) should total 25% or less of annual sales. Managing these carefully can make a big improvement to your bottom line.
5. Sales — track trends and average spend metrics
Analyse your sales data to uncover trends. For example, your average customer spend per visit or per table, and watch for patterns. This lets you make smarter pricing, staffing, and promotions decisions.
Ready to tighten things up?
The most successful venue owners review these metrics every week and every month, and then take action.
These aren’t just vanity metrics, they’re your roadmap to financial stability, growth, and freedom.
Get Support to Get It Right
If all of this sounds confusing, or you just need a little support getting it right, Crunch has a stack of content and support to help you get on track.
We have masterclasses to walk you through understanding your numbers and live Q&As with hospo expert, James O’Connell from The Hospitality Company, for a chance to get all your questions answered.
Start your 30-day free trial at crunchhospo.com.au
No jargon. No fluff. Just hospo-specific advice, live and unfiltered.
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