4 Restaurant Finance Golden Rules All Owners Should Remember

As with any business, staying on top of your restaurant’s finances is essential to success. It is crucial to know what you are earning and what you are spending — and the difference between the two. Keeping track of your financials can be tricky, but staying on top of things is paramount to managing a profitable restaurant. While managing your financials is a complex task, there are few key points to follow to ensure success. Check our list below of the 4 golden rules of restaurant finance to make sure your restaurant is on track monetarily and moving in the right direction.

1. Make a budget and stick to it.

Creating a budget is Business 101. For a restaurant, this means budgeting food costs, labor, repair and maintenance, and overhead (just to name a few). Do your research and set a reasonable and attainable budget. Once you have set that budget, stick to it. It is easy to create a budget and forget about it. However, it is essential to regularly review your budget and make changes where necessary. Always keep an eye on your budgets, making sure you are sticking to them and adjusting them as needed.

2. Know your credit score and keep it high.

Just like in your personal life, you have to have good credit to get financing. Restaurant expenses can add up, so it is important to have financing options available. Vendors will check your credit score and history and may be reluctant to allow payment plans without a good report. Be sure to pay your bills on time and try not to carry large balances.

3. Avoid only paying the minimum payment.

When money is tight, it is tempting to pay only the minimum payment required. While it may lower your monthly expenses initially, this is a very bad practice to get in the habit of doing. It is totally reasonable to use credit cards to make purchases; however, you should strive to pay them off in full each month. Carrying a balance will cause you to accrue interest charges, which can add up very quickly. Don’t get in over your head using credit. Try to only charge as much as you can pay off at the end of the month.

4. Check your reports daily.

Thanks to modern restaurant technology, restaurant managers can check numbers on everything from labor and sales to food costs and loss on a daily basis. Checking these reports daily will help you stay on track with all your budgets. Additionally, these reports can help you ensure proper scheduling and ordering for the next week. Put technology to work for you and monitor your numbers daily. Make changes as needed and stay on top of the trends.

For more information about restaurant financing or help with managing your restaurant’s financial needs, reach out to us.

© YC Partners 2025