Your P&L Isn’t the Enemy. It’s a Compass.

You Don’t Need to Be an Accountant. You Need to Be Curious.

Profit and loss statements aren’t about crunching numbers. They’re about telling the story behind your restaurant’s health, and giving you the power to do something about it. Here’s how to stop avoiding your P&L and start using it to lead.

Start With Prime Cost. Always.

Forget the noise. Begin with this:

Prime Cost = Food + Beverage + Labor

If that number is more than 65% of your total sales, you’re in the danger zone. But here’s the secret:

Don’t slash labor to fix it. Start with food.

That’s where most of the waste hides.

Do Weekly Reviews, Not Monthly Surprises

If you’re only looking at your numbers once a month, you’re reacting too late.

• Set a weekly review rhythm

• Flag anything that looks off

• Use the general ledger to dig deeper

The faster you see the problem, the faster you can fix it.

Watch What’s Moving — and What’s Not

Key questions to ask every week:

• Which dishes have rising food costs?

• Are we buying too much of one item?

• Are labor hours aligned with sales volume?

Your gut may feel one thing. But your numbers tell the truth.

Maximize Labor. Don’t Minimize It.

Too many operators cut hours to chase lower labor costs. Instead:

• Cross-train staff to increase flexibility

• Improve scheduling accuracy

• Identify false savings (e.g., prepping in-house vs buying pre-marinated)

You don’t want fewer staff. You want smarter use of the ones you already have.

Rethink Your Pricing Strategy

If your costs are rising, your prices may need to follow, but not blindly. Ask:

• What is our value proposition?

• Do guests perceive our food as worth the price?

• Can we justify a premium experience?

If you’re serving a gourmet burger with local craft beer, you’re not competing with the 50 Dhs drive-thru.

Your price is your promise. Make sure it reflects your value.

Use Tech, But Don’t Drown in It

P&L software, inventory tools, and analytics dashboards are helpful until they become a distraction. Start simple:

• Focus on food cost, labor cost, and gross profit

• Use spreadsheets if needed

• Ask your accountant or GM to explain unfamiliar line items

Clarity beats complexity. Every time.

The Takeaway

A P&L is not a math problem. It’s a mirror. It reflects your operations, your strategy, and your standards. You don’t have to know everything. But you do have to look often, ask questions, and act early. Because in this business, what you don’t track will hurt you. And what you do track? That’s where growth lives.

“In business, your numbers are your narrative. Don’t let someone else write your story.”