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Restaurant Income Statement: Example & Template

Instructor: Yuanxin (Amy) Yang Alcocer

Amy has a master's degree in secondary education and has taught math at a public charter high school.

When you own a restaurant, one of the things you need to do is to keep track of income and expenses so that you know if you are making a profit. In this lesson, learn how you can do this with the help of the income statement.

Running A Restaurant

Being a restaurant owner is exciting. You get to pick the foods and dishes you want to serve and you get to see your customers enjoying your food. With what end result? At the end of day, you reap the rewards in sales. Make enough sales in one location and you just might be able to expand into another location!

But you can't get there unless you keep a good record of your income and expenses so you know just how much profit you are making.

The Income Statement

What can help you do that? The income statement, which is a record of the money that comes in and the money that goes out. This shows you what your customers paid you, along with what you paid to keep your restaurant running. The difference between the two is your profit. This income statement is also used when filing your taxes, so it serves a dual purpose: letting you know how much profit you are making, and helping you file your taxes.

Using a Template

The best way for you to create an income statement is with the use of a template. You can create your own, or you can use one from an accounting program.

Your template needs to include all your sources of income along with all your expense sources. Each source needs its own line. You first list your income followed by your expenses. Your expenses will be listed in two separate categories. The first category is your expenses related to the food and drink you sold. Your income minus your food expenses is your gross profit. The next category is your expenses related to your operations. Your gross profit minus your operating expenses is your net operating income. Each income and expense item will have its own line.

Dates: ________

Income Amount
Food Sales $
Drink Sales $

Expense Amount
Food Costs $
Drink Costs $

Gross Profit Food and drink sales minus food and drink costs

Operating Expenses Amount
Wages $
Rent $
Insurance $
Utilities $
Office supplies $
Total operating expenses Sum of operating expenses

Net Operating Income Gross profit minus operating expenses

You can create income statements that show you your profit for the day, for the week, for the month, or for the year. This helps you decide how you can grow your business.

Example

Once you have your template set up with all your necessary income and expense items, you can then fill it in. Your income statement might look something like this:

Dates: November 2016

Income Amount
Food Sales $40,325.76
Drink Sales $32,567.82

Expense Amount
Food Costs $22,329.94
Drink Costs $8,532.93

Gross Profit $42,030.71

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