How Restaurants Lose Money Working with Food

A restaurant is not a thing. It is not structure. It is not a group of people. It is not a recipe, concept, or a brand. It is a process that brings product and people together to create a pleasant experience for your guests, and profits for the owners.

By definition, a process is fluid and can spring leaks. The last place you want leaks to occur is in your cash flow. If you think you'll be able to spot these leaks without careful analysis of your business, you might be in for a rude awakening. Individually, they can be very small and escape detection. But if you develop enough of them at once, they can bleed your business dry.

Perhaps the best place to start looking for cash leaks is in your food production process, from start to finish. Plug those leaks and you've shored up the area of your business that is perhaps the most vulnerable to crippling losses.