What is a chart of accounts for a restaurant?
A chart of accounts is a list of all the categories you use to record money coming in and going out of your restaurant. It organizes sales, COGS, labor, and expenses so your reports are clear and consistent.
How to Build a Restaurant Chart of Accounts
Why Every Restaurant Needs a Clear Chart of Accounts
Opening a restaurant is hard enough without feeling lost in the numbers.
Maybe you've looked at your profit and loss report, seen a long list of lines, and thought, "What am I actually looking at?" That confusion usually starts with the chart of accounts.
Your chart of accounts is simply an organized list of all the buckets where your money comes in and goes out - sales, food, labor, rent, supplies, and so on. It's the backbone of your bookkeeping. When it's set up well, you can quickly answer basic questions -
- Are food costs creeping up?
- Is labor in line with sales?
- Which revenue streams are really paying the bills?
When it's messy or random, everything becomes harder - closing the books, working with your accountant, filing taxes, and making daily decisions.
How a Chart of Accounts Is Organized
To use your chart of accounts with confidence, it helps to understand how it is organized. The good news is that the structure is the same for almost every business, including restaurants.
Most charts of accounts follow five main groups -
1. Assets - What the restaurant owns.
- Cash in the bank
- Inventory (food, beverages, paper goods)
- Equipment and furniture
- Prepaid items like insurance
2. Liabilities - What the restaurant owes.
- Credit card balances
- Vendor bills you have not paid yet
- Sales tax payable
- Loans
3. Equity - Owner's investment and retained profit.
- Money you put into the business
- Profits kept in the business over time
4. Revenue (Sales) - Money coming in.
- Food sales
- Beverage sales
- Delivery and takeout
- Catering or other income
5. Expenses - Money going out.
- Cost of goods sold (COGS) for food and beverages
- Labor costs
- Rent, utilities, marketing, repairs, software, and other overhead
Your balance sheet comes from assets, liabilities, and equity. It shows what you own and what you owe at a point in time. Your profit and loss (P&L) comes from revenue and expenses. It shows whether you made money over a period, such as a month.
When you know which group an account belongs to, reading reports becomes easier. You can see patterns - for example, food inventory is an asset, food purchases go into COGS, and food sales go into revenue. This simple structure is what turns random numbers into a clear picture of your restaurant's financial health.
The Smarter Choice for Maximizing Your Financial Potential
Streamline Your Restaurant's Finances with Altametrics!
Core Revenue Accounts
Your revenue accounts show where your sales come from. If everything is lumped into one "Sales" line, you miss chances to spot problems or growth. The goal is to break sales into a few clear buckets without making the chart of accounts too long.
For most restaurants, a simple starting point looks like this -
1. Food Sales Dine-In
2. Food Sales Takeout/Delivery
3. Beverage Sales Non-Alcoholic
4. Beverage Sales Alcohol (or split further into beer, wine, liquor if alcohol is a big part of your business)
5. Catering or Events Income (if you offer it)
6. Other Income (such as merchandise or fees)
Separating dine-in from takeout/delivery helps you see how each channel performs. Delivery often has higher packaging costs and third-party fees. If the sales are mixed together, you cannot see if delivery is actually profitable.
Splitting alcoholic and non-alcoholic beverages matters because pour costs and margins are very different. Alcohol usually has better margins than food. When you track these sales separately, you can watch whether your mix is shifting and how that affects profit.
You do not need dozens of revenue accounts. Aim for 5-10 main revenue accounts that reflect how you actually sell. If you add a new revenue stream, such as a subscription meal plan or a food truck, you can add a new account later.
The key is consistency. Once you choose your revenue accounts, make sure your POS categories map to them correctly. When you pull reports each month, you want to see the same lines in the same place. That stability lets you compare months and quickly see if sales by channel or category are moving in the right direction.
Cost of Goods Sold (COGS)
Cost of Goods Sold (COGS) is one of the most important areas in your chart of accounts. For a restaurant, this is what you spend on the items you sell- food, beverages, and related supplies. If COGS is not organized, it is very hard to control food cost % and beverage cost %.
A simple COGS structure for most restaurants looks like this -
- Food Purchases
- Non-Alcoholic Beverage Purchases
- Beer Purchases
- Wine Purchases
- Liquor Purchases
- Paper and Packaging (to-go containers, napkins, cups, etc.)
- Other Direct Supplies (items used to prepare or serve food, like gloves or skewers)
Breaking out these categories helps you see where money is going. For example, if food cost % suddenly jumps, you can check food purchases without digging through beverage or paper costs. If beverage margins look low, you can compare beer vs. wine vs. liquor purchases and see where the issue might be.
Many owners try to track every small item in total detail, but that usually creates confusion. Instead, focus on clear categories. You can track individual items (like chicken breast or fries) in inventory or recipe tools, while your chart of accounts holds the main buckets.
To use these accounts well, keep a routine -
- Post all vendor invoices to the correct COGS account.
- Do regular inventory counts (monthly at minimum).
- Use the formula - "(Beginning Inventory + Purchases - Ending Inventory) / Sales" to get food or beverage cost %.
When your COGS accounts are set up cleanly, you can spot waste, over-portioning, theft, or price increases faster. This turns your chart of accounts into a practical tool for daily food and beverage control, not just a record for your accountant.
Labor & Operating Expenses
After COGS, labor is usually your largest cost. How you set up labor accounts in your chart of accounts has a big impact on how useful your reports are.
A simple labor structure looks like this -
- FOH Wages (servers, hosts, bussers, bartenders)
- BOH Wages (cooks, dishwashers, prep)
- Management Salaries
- Payroll Taxes
- Employee Benefits (health insurance, retirement, etc.)
Separating FOH, BOH, and management makes it easier to see where labor pressure is coming from. For example, if sales are flat but FOH wages are climbing, you may need to adjust schedules or review tipping and side work. Payroll taxes and benefits should be tracked as their own lines so you understand the true cost of labor, not just the hourly rate or salary.
Next are your operating expenses, often called overhead. These are the day-to-day costs of keeping the doors open -
- Rent or Occupancy
- Utilities (electricity, gas, water, internet)
- Repairs and Maintenance
- Cleaning and Linen Services
- Marketing and Advertising
- Software and Subscriptions (POS, scheduling, accounting, delivery platforms)
- Licenses, Permits, and Fees
- Insurance
- Office Supplies and Small Equipment
A good rule of thumb is to create separate accounts for any category that is meaningful and recurring. If you look at a cost every month and ask, "Is this too high?", it probably deserves its own account. One-time or very small items can be grouped into a general Miscellaneous account.
To make this structure more useful, many operators track labor % and prime cost % (COGS + labor). For many full-service restaurants, prime cost in the range of about 55-65% of sales is a common target. When your labor and operating expense accounts are set up clearly, these percentages become easy to calculate and monitor, and you can adjust staffing or spending before problems grow.
Experience The Benefits of Efficient Financial Management
Take Control of Your Restaurants Finances with Altametrics
Keeping It Simple
One of the biggest problems with a chart of accounts is letting it grow out of control. Every time someone wants more detail, a new account gets added. After a few years, you can end up with hundreds of accounts that no one really understands.
You do not need that level of detail to run a restaurant well.
For most independent restaurants, a chart of accounts with around 60-100 accounts is plenty. This gives you enough detail to see what is happening without turning your P&L into a long, confusing list.
Here are some simple guidelines -
- Start with broad, clear categories. Separate revenue, COGS, labor, and operating expenses as we described earlier.
- Create accounts for costs you review often. If you look at rent, utilities, COGS categories, FOH/BOH labor, and marketing every month, they each deserve their own account.
- Group very small or rare expenses. Items that are low value and infrequent can go into a "Miscellaneous" or "Other" account, as long as they are not hiding important costs.
- Avoid creating an account for every product. Track detailed items (like each menu ingredient) in your inventory or recipe system, not in the chart of accounts.
When you are unsure whether to add a new account, ask two questions -
1. Will I look at this line regularly to make a decision?
2. Does this need to be separate for tax or reporting reasons?
If the answer is no to both, you can likely group it with an existing account.
Keeping things simple has two big benefits- reports are quicker to read, and your team is less likely to miscode invoices or payroll. A clean, stable chart of accounts makes month-end close smoother and lets you compare results over time without constantly changing the structure. The goal is not perfect detail; the goal is usable information.
Setting Up Your Restaurant Chart of Accounts
If you are starting from scratch, building a chart of accounts can feel technical. It does not need to be. You can set up a solid structure by following a clear set of steps.
Step 1. List your main revenue streams
Write down how you actually make money - dine-in, takeout, delivery, bar, catering, events, merchandise. Turn each of these into a revenue account (or a small group of accounts). Aim for 5-10 accounts total.
Step 2. List your major cost buckets
Group your costs into -
COGS - food, non-alcoholic beverages, beer, wine, liquor, paper/packaging.
Labor - FOH wages, BOH wages, management, payroll taxes, benefits.
Operating expenses - rent, utilities, marketing, repairs, software, insurance, licenses, cleaning, and so on.
Step 3. Map POS and payroll to these buckets
Look at your POS categories and payroll items. For each one, decide which account it should hit. For example,
"Draft Beer Sales" in the POS maps to "Beer Sales" revenue. "Line Cook Wages" in payroll maps to "BOH Wages." This mapping step is key if you want clean, consistent reports.
Step 4. Create the accounts in your system
Enter the accounts into your accounting software or spreadsheet. Group them under the five main sections - assets, liabilities, equity, revenue, expenses. Give each account a clear, simple name so staff and your bookkeeper can understand it.
Step 5. Test with one month of data
Post one month of sales, invoices, and payroll. Run a P&L and check -
- Are all sales in the right buckets?
- Are COGS and labor showing in the right sections?
- Are any lines unused or duplicated?
Adjust account names or mappings where needed, then leave the structure in place. Consistency over several months will give you cleaner numbers, more reliable labor % and food cost %, and a clearer view of how your restaurant is performing.
Keeping Your Chart of Accounts Clean Over Time
Setting up your chart of accounts is only the first step. The real value comes from keeping it clean and using it every month.
Build a simple routine -
1. Review your P&L monthly. Look at sales by category, COGS, labor, and prime cost. If a line does not make sense, trace it back to the account.
2. Check for "stray" expenses. Look for items dumped into "Miscellaneous" or the wrong account. Fix the coding and, if needed, update your invoice or payroll mapping so it does not repeat.
3. Merge or deactivate clutter. If you have accounts that are rarely used or duplicate others, merge them or make them inactive. This keeps reports readable.
4. Keep names clear. If you or your manager have to guess what an account means, rename it in simple, direct language.
Your chart of accounts should support better decisions, not just satisfy your accountant. When it is clean, you can quickly see if food cost % is out of range, if labor is creeping up, or if a new revenue stream is worth the effort.
Use Altametrics to Keep Your Numbers Organized
A clean chart of accounts works best when your systems talk to each other. Altametrics helps connect key parts of your operation - sales, labor, and back office - so your data flows into clear, usable reports.
With Altametrics, you can -
- Pull sales data in a structured way that matches your revenue accounts
- Track labor by role and location to support your labor accounts
- Use better data for food, labor, and prime cost decisions
If you want your chart of accounts to drive real control, not extra work, explore how Altametrics can help you by clicking "Schedule a Demo" below.
Sales forecasting
How to Build Engaging Customer Loyalty Programs for Restaurants
Restaurant management
Restaurant Operations Management Made Simple
Accounting payroll
How to Build a Restaurant Chart of Accounts
Restaurant management
Simple KPIs for Multiple Restaurant Locations
Accounting payroll
How to Track Time Accurately for Hourly Restaurant Staff
Restaurant management
Cost Control Guide for Restaurants
Restaurant management
The Ultimate Restaurant Kitchen Design Plan
Sales forecasting
How to Set Up a Restaurant Gift Card Program
Employee scheduling
Are You Following US Labor Laws in Your Restaurant?
Software integration,restaurant management,sales forecasting
How to Design High End Restaurant Loyalty Programs
Sales forecasting
The Essential Steps Involved in Sales Forecasting for Restaurants
Inventory management
The 6 Types of Inventory Management Reports for Restaurants
Restaurant management
Essential CCP Food Handling Procedures Every Restaurant Must Follow
Employee scheduling
The Complete Guide to Efficient Employee Scheduling for Restaurants
Sales forecasting
The Different Methods of Sales Forecasting for Restaurants
Inventory management
What are the four types of inventory management for restaurants?
Restaurant management
Daily Cash Control Checklist for Restaurant Owners
Inventory management
Restaurant Financial Statements Explained
Restaurant management
How Technology Helps Restaurants Cut Food Waste
Inventory management
Top Inventory Management Strategies for Restaurants
Inventory management
How to Build a Restaurant Inventory Management Process from Scratch
Food safety
Food Safety Practices for Small Restaurants
Restaurant management
The Complete Guide to Restaurant Waste Management for Owners
Employee scheduling
The Complete Guide to Restaurant Employee Benefits
Accounting payroll
5 Signs Your Hotel Needs to Upgrade Its Payment Processing System
Restaurant management
The Ultimate Daily Checklist for Restaurant Owners
Accounting payroll
Are You Over-complicating Your Restaurants Payroll Process?
Inventory management
Is Your Inventory Management Costing You Profits?
Employee scheduling
How Can Smart Scheduling Transform Your Restaurant's Efficiency?
Restaurant management
What Are the Best Email Marketing Campaign Ideas for Restaurants in 2025?
Restaurant management
How Can You Maintain Brand Consistency Across Multiple Franchise Locations?
Employee scheduling
How Can Restaurants Prevent Scheduling Conflicts and Last-Minute Absences?
Restaurant management
What's the Most Efficient Way to Manage Tasks in a Busy Restaurant?
Employee scheduling
What Should You Look for When Interviewing Restaurant Staff?
Restaurant management
What Is a Dram Shop Law and How Does It Affect Your Restaurant?
Restaurant management
What Features Should Every Restaurant Ordering System Have in 2025?
Accounting payroll
What Are the Most Cost-Effective Ways to Reduce Waste in a Restaurant?
Inventory management
Are Your Menu Items Costing You More Than They're Worth?
Accounting payroll
How Do You Handle Overtime and Tip Credit in Restaurant Payroll?
Accounting payroll
Are You Spending Too Much Time on Payroll? Here's How to Fix it
Inventory management
How Can I Implement an Effective Inventory Management System in my Restaurant?
Sales forecasting
What Do Consumer Reports Say About Your Menu?
Inventory management
What Are the Main Inventory Costing Methods for Restaurants?
Restaurant management
How to Streamline Your Restaurants Supply Chain
Restaurant management
How to Optimize Order Fulfillment in Your Restaurant
Employee scheduling
How to Design an Effective Employee Training Program for Restaurants
Restaurant management
9 Essential Workforce Management Tools Every Restaurant Needs
Accounting payroll
How to Read and Use Your Restaurants Profit and Loss Statement
Accounting payroll
How to Organize Your Restaurant's Financial Records Efficiently
Accounting payroll
Restaurant Billing 101 - Simplify Your Finances and Boost Efficiency
Accounting payroll
The Ultimate Guide to Accounts Payable Automation for Restaurant Owners
Accounting payroll
Benefits of Accounts Receivable Automation for Restaurants
Accounting payroll
The Ultimate Guide to Restaurant Accounting
Accounting payroll
Restaurant Bookkeeping 101 - A Beginner's Guide for Restaurant Owners
Accounting payroll
Invoice Management 101 - A Simple Guide for Restaurant Owners
Restaurant management
What Are Par Levels and Why Every Restaurant Owner Should Care
Sales forecasting
Top 5 Consumer Metrics Every Restaurant Should Track
Inventory management
Which Inventory Method is Best for Your Restaurant?
Accounting payroll
Setting Up an Employee Loan Program in Your Restaurant
Employee scheduling
The Ultimate Employee Onboarding Checklist for Restaurant Owners
Accounting payroll
Top 7 Payroll Mistakes Restaurant Owners Should Avoid
Accounting payroll
How to Calculate Food Cost Variance in Your Restaurant
Sales forecasting
A Guide to Understanding Customer Behavior in Restaurants
Restaurant management
Top 10 California Employment Laws Every Restaurant Owner Must Know
Restaurant management
How to Create Custom Recipe Templates for Your Restaurant Kitchen
Restaurant management
5 Practical Strategies to Cut Food Waste in Your Restaurant
Restaurant management
Understanding Restaurant Food Cost Percentage in 2025 - Strategies for Profitability
Inventory management
The Restaurant Owner's Guide to Streamlining Supply Chain Processes
Restaurant management
How to Efficiently Calculate and Manage Labor Cost in Restaurants
Food safety
General Food Safety Guidelines for Restaurants
Inventory management
A Guide for Restaurant Food Suppliers
Employee scheduling
Key Elements of a Successful Restaurant Scheduling System
Restaurant management
How to Reduce Labor Costs in Your Restaurant Without Sacrificing Service
Inventory management
5 Best Practices for Food Inventory Management to Reduce Waste
Employee scheduling
Understanding California Overtime Laws for Restaurants
Employee scheduling
Top Features to Look for in an Electronic Time Clock for Restaurants
Restaurant management
The Best Employee Rewards Programs for Restaurants
Employee scheduling
The Best Time Keeping Methods for Restaurants
Employee scheduling
How a Restaurant Scheduling App Helps You Avoid Common Scheduling Mistakes
Employee scheduling
Features to Look for in a Clock-In Machine for Restaurants
Employee scheduling
How to Improve Time and Attendance Tracking in Your Restaurant
Employee scheduling
How California Work Week Laws Affect Restaurant Scheduling
Accounting payroll
Best Practices for Calculating Payroll Hours in Restaurants
Employee scheduling
How to Prevent Time Theft in Your Restaurant
Restaurant management
How Technology Can Improve Employee Management in Restaurants
Employee scheduling
California Employment Laws Every Hotel Owner Should Know in 2025
Restaurant management
California's Updated Overtime and Break Laws for Restaurants
Employee scheduling
10 Essential Work Schedules for Running a Smooth Restaurant Operation
Employee scheduling
How to Accurately Calculate Work Hours for Your Restaurant Staff
Employee scheduling
Best Practices for Managing Employee Time and Attendance in Restaurants
Employee scheduling
How to Create an Efficient Restaurant Weekly Schedule That Boosts Productivity
Software integration
Top 5 Benefits of Automating Your Business Workflows
Software integration
The Role of AI in Business Process Automation
Software integration
The Power of API Integrations - Connecting Your Business Tools Seamlessly
Software integration
The Importance of Seamless Integrations in Today's Business Landscape
Software integration
How Workflow Automation Can Save Small Businesses Thousands of Dollars
Software integration
How Any Connector Simplifies API Integrations for Your Business
Software integration
Empowering Your Employees with Automation- A Win-Win Strategy
Software integration
Building a Business Case for Automation in Your Organization
Employee scheduling
Automation in Hospitality - Streamlining Guest Experiences
Restaurant management
5 Ways Restaurants Can Leverage Automation for Operational Success
Sales forecasting
How to Double Your Restaurant's Profit in 30 Days
Inventory management
The Ultimate Guide to Accurate Inventory Counting in Restaurants
Restaurant management
How to Transform Your Restaurant Operations
Restaurant management
How to Effectively Reduce Expenses and Increase Staff Engagement in Your Restaurant
Employee scheduling
How to make sure you will always meet labor goals before you run payroll
Employee scheduling
How to reduce labor costs without retraining your management team.
Restaurant management
3 top reasons your managers should always earn their bonuses
Software integration
How to guarantee your franchise technology rollout will be a success
Employee scheduling
How to reduce labor costs by 3-5% without ever using an excel spreadsheet again
Employee scheduling
How to find and keep your best employees
Software integration
Why your IT team has to provide better mobile apps for you to stay competitive
Accounting payroll
How to streamline your business operations test for maximum efficiency
Software integration
How to make sure your technology projects are on time and on budget
Employee scheduling
Why employee engagement and retention are the keys to improving profitability
Employee scheduling
The easy way to write great employee schedules
Restaurant management
How to manage your restaurant inventory planning to ensure you're never caught short
Inventory management
5 Basic Inventory Management Tips That Can Save You Money
Inventory management
Top 3 Reasons Why You Need Cloud-Based Inventory Management Software
Restaurant management
The Best Food Service Management Companies in the Industry
Software integration
7 Tips for Choosing the Best Restaurant Directory Software
Food safety
What You Need to Know About Food Tech Safety
Employee scheduling
The Top 5 Reasons To Use HR Reporting Software
Food safety
A Guide On What To Know About SQF Food Safety
Inventory management
10 Inventory Management Stock Control Tips For Your Business
Restaurant management
Issues Facing Multi-Chain Restaurants In 2022
Employee scheduling
The Benefits of HR Software Reporting For Professionals
Employee scheduling
5 Top HR Software Solutions To Consider For Your Business
Software integration
5 Reasons Why You Need Restaurant Menu Software
Employee scheduling
Tips for Retaining Hourly Restaurant Employees
Employee scheduling
Hurdles That Keep Restaurant Chains From Becoming The Employer Of Choice
Accounting payroll
Why You Should Start Using Restaurant Payroll Software
Inventory management
How To Make The Most Out Of Your Simple Inventory Management Software
Restaurant management
Food Waste Management- 6 Strategies to Reduce the Impact of Food Waste
Food safety
CDC Food Safety- The Important Perspective
Food safety
What To Know About Taking A Food Safety Class
Inventory management
The Average Restaurant Food Cost Percentage & What You Can Do About It
Inventory management
Inventory Management Best Practices- A Guide to Controlling Your Inventory
Software integration
How to Choose the Right Restaurant Dashboard Software for Your Needs
Inventory management
5 Free Inventory Management Tools for Small Businesses
Food safety
How to Get a Food and Drink Handling License
Employee scheduling
3 Ways You Can Get Your Employees to Love Cloud-based HR and Payroll Software
Inventory management
5 Ways to Improve Your Multi Channel Inventory Management
Inventory management
5 Top Ways to Reduce Your Restaurant Fixed Costs
Inventory management
The Best Inventory Management Software- The Ultimate Guide
Food safety
What To Know About A Food Safety Course Online
Employee scheduling
The Best Free Employee Scheduling Apps to Help Your Business Run Smoothly
Food safety
How To Identify PHF Food Safety Anywhere You Are
Restaurant management
5 Tips for Choosing the Best Kitchen Equipment Supplier
Software integration
Mobile Device Inventory Management- A Guide to Help You Do It Right
Food safety
Food Safety Zone- A Guide to Safely Eating Out
Restaurant management
3 Tips to Find the Best Restaurant Paper Suppliers
Inventory management
Top Free Inventory Management Software for Small Businesses
Food safety
7 Ways To Become A Food Safety Auditor
Employee scheduling
5 Reasons You Should Be Using Free HR Software
Inventory management
4 Types of Inventory Management Systems and How They Affect Your Business
Employee scheduling
HR Recruitment Software- Why Restaurant Chains Fail To Become Preferred Choice
Restaurant management
Food Waste Management Solutions- The Ultimate Guide to Eliminating Food Waste
Employee scheduling
HR Software Solutions- Tips For Retaining Hourly Restaurant Employees
Accounting payroll
What You Need to Know About Restaurant Payroll Laws
Employee scheduling
HR Software List- The Best and the Worst
Restaurant management
How Restaurant Food Suppliers Are Important To A Business
Restaurant management
What Are The Best Restaurant Paper Goods Suppliers?
Inventory management
The Ultimate Guide to Inventory Management Techniques
Food safety
Food Safety Tips- How To Stay Safe at Home
Restaurant management
5 Questions to Ask Yourself Before Hiring a Food Service Management Company
Restaurant management
Ordering Management System- Issues Faced by Multi-Chain Restaurants In 2022
Food safety
Three Steps to Creating a Food Safety Plan
Employee scheduling
The Best Employee Time Clock Machines for Your Business
Employee scheduling
The Top 5 Reasons to Switch to Cloud Based HR Software
Employee scheduling
Our Top 5 Best Employee Scheduling Apps For Small Businesses
Food safety
Food Safety News- A Checklist for Safe Foods
Restaurant management
8 Tips for Successful Financial Management In Food Service
Software integration
5 Tips for Improving Your Data Integration Software
Food safety
5 Benefits of Food Safety That You Need to Know
Restaurant management
America's Fastest Growing Restaurant Chains That You Probably Haven't Heard Of
Employee scheduling
The Best Employee Shift Planning Manager | Employee Scheduling & Shift Planning
Employee scheduling
Free Employee Time Clock to Give Your Business a Competitive Edge
Restaurant management
The Best Restaurant Produce Suppliers in America
Employee scheduling
HR Timesheet Software- What To Look For and How It Works
Restaurant management
Find the Best Restaurant Chemical Suppliers
Employee scheduling
Tracking Time Effectively- The Best HR Time Tracking Software
Accounting payroll
5 Best Business Accounting Software Reviews
Employee scheduling
5 Free Employee Scheduling Apps You Need to Try
Restaurant management
How to Find the Best Restaurant Coffee Suppliers
Frequently Asked Questions
How should I break out labor in my chart of accounts?
Prime costs are COGS + labor. For many restaurants, a prime cost around 55-65% of sales is a common target. Your chart of accounts makes it possible to measure this number and control it.
What are prime costs?
Most independent restaurants do well with about 60-100 accounts. That is enough detail to manage the business without making reports long and confusing.
How many accounts should a small restaurant have?
Use clear buckets such as -
- Food purchases
- Non-alcoholic beverage purchases
- Beer, wine, liquor purchases
- Paper and packaging
This makes it easier to track food and beverage cost % and spot waste or price changes.
- Food purchases
- Non-alcoholic beverage purchases
- Beer, wine, liquor purchases
- Paper and packaging
This makes it easier to track food and beverage cost % and spot waste or price changes.
How should I structure my COGS accounts?
Separate -
- FOH wages
- BOH wages
- Management salaries
- Payroll taxes
- Benefits
This helps you see where labor pressure is coming from and calculate a realistic labor %.
- FOH wages
- BOH wages
- Management salaries
- Payroll taxes
- Benefits
This helps you see where labor pressure is coming from and calculate a realistic labor %.
