How does one calculate net sales in a restaurant?

Answer 1

Are you looking for "net sales" or "net income"?

The answer depends on how detailed you are in your bookkeeping process.

"Net sales" in many operations is "Gross sales" minus comps (food given away), discounts and promos. These sales are removed from the gross sales total, and the cost of goods for preparing comps, discounts and promos subtracted from your cost of goods sold to find a "net sales" amount that is not skewed by your giveaways and discounts. It gives you a number that allows you to find a cost of goods sold that more accurately reflects whether your staff is controlling your food cost.

Not many restaurants calculate "net sales". They expense comps, discounts and promos. They can better track their costs by comparing actual food costs to ideal food costs that are tracked by keeping up to date recipe costs and multiplying them by the number of each item they sell to determine how much the food SHOULD have cost them to sell.

"Net income" is just as described already. It's your gross sales minus all the expenses of running your business from labor to operating expenses and cost of goods sold.

If you need more help. Feel free to contact me.

Brandon O'Dell
O'Dell Consulting
Restaurants / Retail / Bars
[e-mail]
http://www.bodellconsulting.com

Free initial consultations

Answer 2

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Answer 3

Gross sales - all expenses = Net income

Answer 4

Take your gross receipts and subtract all expenses.

Answer 5

are complementary meals expenses?