Online Companion: Successful Restaurant Management, From Vision to Execution

Declining Budget

Figure 5-6

A declining budget assists management in controlling operational costs. The Operating Expense is listed in column A. In Column 2, the budgeted percentage for each line item is listed. This percentage should be the same as the percentage entered on the Operational Expense Worksheet of the Budget Tab. Enter the sales in the space next to "PROJECTED MONTHLY SALES". The monthly dollar amount allowed by the budget will be calculated, shown under the heading "Budget" for each line item.

At the end of each week, enter the actual dollar amount spent for each line item. Column H will display the total spent to date and column I will show the balance left to spend for the month. This does not take into account Actual Sales, which will influence the dollar amount allowed. When sales are higher, more is available to spend. When sales are lower, less is available to spend.