are two things you must be aware of before
you come out to the conclusion on whether your
restaurant is profitable or not:
The knowledge of the profit margin for
every course sold;
The internal rate of return (IRR) of your
restaurant as a whole.
internal rate of return (IRR) is the
type that holds the meaning that a series
of profit flows, in actual values, pays
the invested capital.
your restaurant's IRR is larger
the yield you could obtain elsewhere, then
feel hapy for your restaurant's profitability
Incidentally, the profitability analysis
is the last step in a process that begins
with cost calculation and ends on the sale
price. The profitability analysis intends
to mean two things:
That is the right time to pullout or remain
in the restaurant business;
That is right time to make an in depth
review of your current operations.