Mower & Associates is focused on increasing restaurant profitability.

1. RESTAURANTACCOUNTINGMower & Associates, CPA1833 S Millennium Way Suite 100Meridian, ID 83642(208)342-5905paul@mowercpa.com

2. Mower & Associates, CPA1833 S Millennium Way Suite 100Meridian, ID 83642(208)342-5905paul@mowercpa.com • Mower & Associates is focused on increasing restaurant profitability. • M&A offers management solutions for single and multi-unit restaurants. • M&A takes responsibility for payroll, accounts payable, financial reporting and tax preparation off your plate. • Plus, you have electronic access to restaurant-specific spreadsheets and forms. • We personally help you analyze your reports to find more profit. • Give us your data from anywhere around the U.S. and we will help your restaurant prosper.

3. MORE CONTROLMORE PROFIT

4. ATTENTION TO DETAILHIGHER PROFITS In a restaurant grossing $2.5 million, if each server sold two more desserts per night, profit would improve 43%.

5. Mower & AssociatesRestaurant CPA FINANCIAL STATEMENTS TOOLS for PROFIT BALANCE SHEET Summarizes Assets, Payables and Net Worth Key accounts on balance sheet Cash - must agree with bank balance Inventory - must agree with physical inventory count Payables - if there are no payables, the balance sheet and P&L are wrong STATEMENT OF PROFIT OR LOSS This statement shows Sales, Expenses, and Profits Use accrual accounting not cash accounting

6. Mower & AssociatesRestaurant CPA QUALITY FINANCIAL STATEMENTS

7. Mower & AssociatesPaul MowerRestaurant CPA Review of Profit and Loss Statements WE ASK A LOT OF QUESTIONS ABOUT: SALES COST OF GOODS SOLD LABOR GENERAL EXPENSES CASH FLOW

8. Restaurant Owner and Paul Mower, CPACompare and Measure Sales

9. Mower & AssociatesBREAKEVEN SALES Step 1 Add up Fixed Costs Step 2 Add up Variable Costs Step 3 Calculate Breakeven Sales

10. Mower & AssociatesBreakevenComputation

11. COST OF GOODS SOLD If Cost of Goods are high, check for: Spoilage and Waste Purchase and Receiving Shortages Employee Theft Under reported Sales Calculate exact foods costs each period (weekly) Food cost occurs when the food is used, not when the food bill is paid Step 1 Count merchandise received during the period Step 2 Count inventory Step 3 If inventory increases, subtract the increase from purchases If inventory decreases, add the decrease to purchases Example Purchases $4,000 Inventory Decrease 500 COGS $4,500

12. Restaurant Owner and Paul Mower, CPAReview Labor Costs Factors that Affect Labor Costs • Sales • Type of Restaurant • Capability of employees Analyzing Costs • Compare labor costs to other restaurants • Review labor on a daily basis • Set goals for labor costs • Labor Schedule based on Hourly Customer Count

13. Mower & AssociatesDAILY LABOR SCHEDULE

14. GENERAL EXPENSES CONTROL

15. THE MENU Menu Costing Menu Pricing Menu Engineering

16. MENU COSTING

17. MENU PRICING Three ways to price a menu • Compare to competitors • Food cost percentage for target profit • Add profit, overhead and food cost for each item

18. MENU ENGINEERING • Rate each menu item • A Popular and Profitable • B Popular Only • C Profitable Only • D Unpopular and Unprofitable • Based on Rating • Eliminate items • Change the price of items • Refocus the menu placement • Change the way the items are prepared • Add new items to revitalize the menu

19. Mower & AssociatesMenu Engineering

20. Value for your $ Mower & Associates, CPA1833 S Millennium Way Suite 100Meridian, ID 83642paul@mowercpa.com (208)342-5905Paul Mower Restaurant CPA