From the numbers to the change
- Your numbers sayCovers steady, margin gone, cash tight at month-end
- The cause underneathFood cost creeping up, wastage unmeasured, delivery commissions eating the margin, rent too high for the sales
- What changesMenu and recipe costing, daily wastage log, delivery pricing, rent and staffing review
- What to expectPrime cost down, margin back, month-end cash stops being a worry
An illustration of how the thinking runs, not a client result.
The numbers that matter most here
Track these weekly. Restaurants cannot wait for monthly accounts.
| Number | Why it matters in this business |
|---|---|
| Food cost %, by dish and overall | The costed recipe against actual use shows leakage |
| Wastage and free items | Often the biggest silent cost |
| Staff cost %, and sales per labour hour | The second half of prime cost |
| Rent as % of sales | A fixed cost that tests the whole model |
| Delivery platform share and commission | A sale that nets far less than it appears |
What trouble usually looks like
| The numbers show | The cause is often |
|---|---|
| Sales fine, food cost rising | Portion drift, supplier price creep, wastage, theft |
| Margin falling as delivery grows | Commissions and discounts not priced in |
| Staff cost heavy on slow days | Rosters not matched to footfall |
| Cash tight at month-end | Large supplier or rent payments bunch up |
How we would sequence a turnaround
Cost every recipe
and compare to actual stock use.
Daily wastage log
with a named owner.
Price delivery items separately
or change the delivery menu.
Roster to footfall data.
Review rent and the lease,
and the case for each outlet.
Business under pressure? Let a CFO read your numbers.
A senior CFO reads them with you and tells you what is really going on. No cost, no obligation.
What is specific to restaurants
Cash moves daily in a restaurant, so problems show fast and can be fixed fast. A small group of costs decide the result, and the owner often sees only the sales. Bringing the daily numbers to the owner, in a simple format, often does half the job.
Related reading
On the main CFOSurge India site: Food processing and FMCG CFO services.
CFOAvatar complements every turnaround
A human CFO sees your business at the review. Problems do not wait for the meeting. CFOAvatar is connected to your accounting data and checks your numbers every day, so the scoreboard in a turnaround is always current. Ask it what an owner in trouble would ask:
What owners say after the numbers started talking
Their insights led us to monitor margins on a detailed customer-wise and product-wise basis, providing clarity we never had before. Their proactive approach has been instrumental in identifying areas for cost control.
Thanks to CFOSurge, we now know exactly what each product contributes to our bottom line. Our sales team operates with clear geography-wise data, our accounts are well-maintained, statutory payments are handled systematically, and our inventory is finally accurate. They didn't just fix our books—they helped us plan for growth.
We now prepare monthly business plans that clearly show revenue, costs, and final profit. This has helped us plan better and avoid last-minute surprises.
Quoted word for word from our clients. Read more client words →
Questions owners ask us
What is a good food cost percentage?
It varies by cuisine and format. The point is to know your own, by dish, and to see it move week to week.
Is delivery worth it?
Only if the net margin after commission, packaging and discounts is positive. Many restaurants find some delivery items lose money.
When should I close an outlet?
When the outlet's contribution cannot cover its rent and direct costs even after repairs. The numbers by outlet decide.