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Important numbers for Restaurant Business – P/L (Part 1) Sales

Hi everyone!
My name is Taku, CEO of KAMEREO.
We provide system helping restaurant/cafe/bar to simplify sourcing/purchasing without no initial cost with as low as possible monthly cost.

From my previous experience as COO at Pizza 4P’s for 3 years and Investment banker at one of the biggest firms, Credit Suisse for 3 years, I would like to share basic of numbers for restaurant business in Vietnam.

I know many of restaurant mangers & chefs struggle to understand numbers. I will try to explain as easy as possible here!!
As it would be long, I will divide into 3 posts for this topic going forward. Hope you like it!

3 topics will be (1) Sales, (2) COGS (Cost of goods sold) and (3) other cost & profit. If you like it, please don’t forget to share your friends or contact me further discussion if you need my help at!

Today topic will be sales of restaurant business.

But, I will bit explain about what P/L in general!
P/L = Profit & Loss Statement – This is snap shot of your restaurant business for monthly or quarterly or annually. Many people call it as P/L which mean Profit & Loss Statement.

Here below are rough number of P/L for restaurant business in Vietnam.

*It does not include office cost. If it’s in U.S/Japan/Europe, % of labor cost and rent would be much higher as you may notice. So, you are lucky as it’s relatively easier to make profit in Vietnam if you do right things!

The ranges of each cost are:

  • COGS: 20% to 40%
  • Gross profit: 60% to 80%
  • Labour cost: 10% to 25%
  • Utility cost: 5% to 10%
  • Other cost: 5% to 10%
  • Operational profit: 0 to 40%

(1) Sales

Sales is what your customer pay for your food & drink. In P/L, you should use number excluding VAT as VAT is just money you keep and need to pay back to government. For cost, you also don’t include VAT for P/L.
If you want to forecast Sales, you need to forecast 2 components roughly which is…

A. Average spending amount of a customer
B. Number of customers per day

Your daily sales forecast would be A  x B.

If you provide cheap items, you need to have more customer coming.

If you provide high value item, you may not need many customer to make profit. So, you need to decide what # is your target for A and B above.

You will also put some adjustment in your business forecast for weekday & weekend/holidays, rainy season or not etc…

  • If you have table in outside, you should consider to discount number of customer as you may not able to use those space for client for super sunny days during lunch time and during rainy season…
  • If you have delivery sales, you could also add those into your business forecast. Please remember there would be fee to pay for delivery platform if you use like Delivery Now, Vietnammm etc. which usually is about 10-20%.

That has concluded my first blog on PL and Sales. I hope it has been helpful. Please stay tuned for next week’s post on COGS, a very interesting topic.

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Taku Tanaka

Taku Tanaka