Running a café or restaurant is as much about passion for food and service as it is about managing numbers. In a competitive market with rising costs and thin margins, strong financial management is what separates thriving venues from those that struggle to stay open.
Your cost of goods sold (COGS) is one of the most important metrics in hospitality. Aim to keep food costs between 28–35% of revenue and beverage costs even lower. Regular stocktakes, portion control, and supplier price monitoring help you stay within target and protect your margins.
Labour typically accounts for 25–35% of revenue in hospitality. Scheduling staff to match peak and off-peak periods, cross-training employees, and using rostering software can significantly reduce unnecessary labour spend without compromising service quality.
Knowing how many covers or transactions you need each day to cover fixed costs — rent, utilities, insurance, loan repayments — gives you a clear daily sales target. This is especially important during slower seasons or when testing new menu items or opening hours.
Whether you're considering a second location, expanding your catering service, or renovating your venue, having up-to-date financial records and forecasts makes it easier to secure finance and make confident decisions. Regular monthly reporting keeps you informed and in control.
BV Advisory has extensive experience working with café and restaurant owners across Australia. We provide practical accounting, tax, and advisory support tailored to the hospitality industry. Contact us to learn how we can help your business thrive.