Rethinking the 55% Prime Cost Rule for Bar & Restaurant Owners: Boost Profitability and Financial Control

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Ever wondered why your bar isn't hitting that golden 55% prime cost target? This week on the Bar Business Podcast, I reveal why this number isn't the be-all and end-all for every establishment. You'll learn how factors like location and occupancy costs can shift the goalposts, and why tailoring your approach is crucial for your bar's financial well-being. I'm not here to preach textbook strategies; we're diving into the real-world implications that make or break your bottom line.
Accounting can be a headache, but it's the lifeblood of your bar's success. As your host, Chris Schneider, I break down the nitty-gritty of prime cost management, showing you how to separate your expenses into crystal-clear categories for a laser-focused view of your financial health. From mastering the art of differentiating beverage costs to embracing tools and expertise that streamline your financial tracking, this episode is your ticket to data-driven decision-making that can dramatically improve your business. But wait, there's more! We're peeling back the layers on prime cost management within the hospitality sector, discussing everything from the intricacies of labor cost categorization to the complexities of third-party delivery service fees.

Learn More:
The Bar Business Podcast Website
Schedule a Strategy Session
Chris' Book 'How to Make Top-Shelf Profits in the Bar Business'
Bar Business Nation Facebook Group
Thank you to our show sponsors, SpotOn and Starfish. SpotOn's modern, cloud-based POS system allows bars to increase team productivity and provides the reporting you need to make smart financial decisions. Starfish works with your bookkeeping software using AI to help you make data-driven decisions and maximize your profits while giving you benchmarking data to understand how you compare to the industry at large.
**We are a SpotOn affiliate and earn commissions from the link above.
A podcast for bar, pub, tavern, nightclub, and restaurant owners, managers, and hospitality professionals, covering essential topics like bar inventory, marketing strategies, restaurant financials, and hospitality profits to help increase bar profits and overall success in the hospitality industry.