How to control Restaurant Budget & Costs

As a flexible budgeting software system Rabio can easily be integrated into business to control budget & costs. One of these cases is restaurant budget & costs management where the need to control is critical. In this article, we are going to see how Rabio can help.

What is a restaurant budget?

A restaurant budget is defined by the financial limits, while the restaurant’s financial forecast determines what the owner will be able to do within those limits. While there will always be costs that the owner can’t control, a budget gives restaurant management the framework for the critical financial decisions that can be controlled. 

Using Cost Breakdown Structure (CBS)

Cost Breakdown Structure (CBS) is a breakdown of the costs of the various components and elements of the project’s structure including all works or services done by the subcontractors. The CBS is used to continuously check & compare the actual costs with the budget, and integrate them into the cost control management system.

The Cost Breakdown Structure is created based on Centers and Categories. This is a typical Cost Breakdown Structure (CBS).

Restaurant Budgeting Demo

The demo project in Rabio is based on a hypothetical restaurant company that controls restaurants in various cities.

The scope of the demo project is to control the budget and costs for each restaurant.
The duration of the project is 12 months starting from January 2020 until December 2020.

Centers Breakdown

Centers are allocated to the following groups which are US States :

Centers based on the mentioned groups are :

Categories

Categories are organized to major groups and details like:

  • 1000 Food Costs
  • 2000 Labor
  • 3000 Operating Costs
  • 4000 Other Costs
  • 5000 Marketing
  • 9000 Profit

Categories based on mentioned groups are:

  • 1000 Food Costs
    • 1001 Food Cost
    • 1002 Beer and Wine Cost
    • ………………
  • 2000 Labor
    • 2100 Labor Direct
      • 2101 Owner
      • 2102 Salary (GM)
      • 2103 Salary (Asst)
      • 2104 Wages (Hourly Mgmt)
      • 2105 Wages (Hourly)
      • 2106 Wages (Hourly Ohter)
    • 2200 Labor Indirect
      • 2202 Hiring and Training Expenses
      • 2203 Payroll (taxes etc.)
      • 2204 Benefits
  • 3000 Operating Costs
    • 3001 Bank Service Charge
    • 3002 Outside Services
    • ……………
  • 4000 Other Costs
    • 4001 Company Automobile Expense
    • 4002 Accounting and Legal
    • …………….
  • 5000 Marketing
    • 5001 Newspaper inserts
    • 5002 Direct Mail (or letters)
    • 5003 Door Hanging
    • ……………
  • 9000 Profit
    • 9001 Net Profit

Budget & Costs

The demo for Restaurant Budgeting project includes two managers which are:

  • Budget
  • Costs
restaurant budgeting
Restaurant Budgeting with Rabio

Online Restaurant Budgeting Demo

To view the demo please follow: https://demo.rabio.eu

Please use the credentials below to view the demo :

  • Email: restaurant@example.com
  • Password: rabio

For security reasons, the demo user has restricted access and is not able to insert or update data in any form as it’s user role is set as viewer.

Open Source

Rabio is now open source and you can download it for free. Download Rabio here

Published
Categorized as Blog