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If you don’t plan and track your fast-food restaurant budget properly, you're setting yourself up for failure.
When we developed our strategy pack for fast-food restaurant owners, we saw many owners struggling with finances and planning.
They were disorganized, had no grasp of cash flow, and were drowning in financial troubles despite having substantial revenue.
Don’t let this be you—stand out and succeed.
We’ve created a small, free tool to help you get started: our Budget Tracker and Planner. Let’s turn your fast-food restaurant's finances around and set you on the path to success!
Get the budget tracker tailored for fast-food restaurants
Most fast-food restaurant owners don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for fast-food restaurants
Here is an example of a (very) detailed budget for a fast-food restaurant, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for fast-food restaurant space | $3,000 | $36,000 |
| Electricity | Power consumption for kitchen & dining area | $600 | $7,200 |
| Water | Water usage | $150 | $1,800 |
| Gas | Gas for cooking and heating | $250 | $3,000 |
| Internet & Phone | Internet service and business phone | $100 | $1,200 |
| Waste Removal | Garbage and recycling services | $80 | $960 |
| Pest Control | Monthly pest control services | $40 | $480 |
| Insurance | Property and liability insurance | $400 | $4,800 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| Manager | 1 | $3,000 | $3,000 | $36,000 |
| Shift Supervisors | 2 | $2,500 | $5,000 | $60,000 |
| Cashiers | 3 | $1,800 | $5,400 | $64,800 |
| Kitchen Staff | 4 | $2,000 | $8,000 | $96,000 |
| Cleaning Staff | 2 | $1,500 | $3,000 | $36,000 |
3. Food & Beverage Costs
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Food Inventory | Ingredients for menu items | $8,000 | $96,000 |
| Beverage Inventory | Soft drinks, coffee, etc. | $2,000 | $24,000 |
| Condiments & Spices | Seasonings, sauces, dressings, etc. | $300 | $3,600 |
| Cleaning Supplies | Detergents, sanitizers, etc. | $150 | $1,800 |
| Paper Goods | Napkins, paper towels, to-go containers | $250 | $3,000 |
| Kitchen Utensils | Smallwares, cutlery, and kitchen tools | $150 | $1,800 |
| Dishware & Glassware | Plates, bowls, glasses, etc. | $150 | $1,800 |
4. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, Facebook Ads, etc. | $200 | $2,400 |
| Social Media Management | Managing social media accounts | $300 | $3,600 |
| Print Advertising | Flyers, posters, newspaper ads | $150 | $1,800 |
| Website Maintenance | Hosting, domain, updates | $80 | $960 |
| Email Marketing | Email campaigns and newsletters | $100 | $1,200 |
| Promotional Events | Special events and promotions | $150 | $1,800 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Equipment Maintenance | Regular maintenance of kitchen equipment | $400 | $4,800 |
| Uniforms | Staff uniforms and aprons | $150 | $1,800 |
| Licenses & Permits | Health permits, business licenses, etc. | $80 | $960 |
| POS System | Point of Sale software and hardware | $120 | $1,440 |
| Contingency Fund | Emergency repairs and unexpected costs | $400 | $4,800 |
| Office Supplies | Stationery, pens, printer ink, etc. | $80 | $960 |
| Staff Training | Training programs and materials | $150 | $1,800 |
Some fast-food restaurants make 5x more profit than you!
We have studied the strategies of the best fast-food restaurants in the world. Replicate them now!
What are the biggest expenses for a fast-food restaurant?
Watch out for these budget busters. Here are five major costs every fast-food restaurant owner needs to consider, along with some tips on how to manage them effectively.
- Food and beverage costsThese can quickly drain your budget. Fast food relies on a steady supply of ingredients, and prices can vary due to seasonality, supply chain disruptions, and quality. To keep these costs under control, focus on portion control, negotiate better prices with suppliers, and minimize waste. It's easy to overspend by ordering too much or choosing premium ingredients that don’t significantly enhance your menu.
- Staffing your fast-food restaurantYour team is essential, but wages, benefits, and training can be costly. This expense is always significant because you need enough staff to ensure quick service and smooth operations. Optimize labor costs by scheduling efficiently, cross-training employees, and monitoring productivity. However, avoid underpaying or overworking your staff, as this can lead to high turnover and poor service.
- Rent and utilities of your fast-food outletPrime locations come with high rent, but they can draw more customers. Utilities like electricity, gas, and water are necessary but can add up fast. To manage these costs, negotiate favorable lease terms and invest in energy-efficient appliances and lighting. Overspending often occurs when you choose a location that's too large or too upscale for your needs.
- MarketingGetting the word out about your fast-food restaurant is crucial, but advertising can be expensive, whether it's online ads, social media campaigns, or traditional media. Optimize this expense by focusing on cost-effective methods like the ones we recommend. Overspending can happen if you invest in flashy campaigns without a clear return on investment.
- Kitchen equipment and maintenance costsThis includes everything from fryers to seating. These are costly because quality equipment and regular maintenance are vital for efficient operations and customer satisfaction. Optimize by investing in durable, energy-efficient equipment and maintaining it regularly to avoid expensive breakdowns. You can overspend by opting for the latest high-tech gadgets you don’t really need.
How to spend less with your fast-food restaurant?
Here are practical tips to help you, as a fast-food restaurant owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Food Costs | Source ingredients from local suppliers to get fresh produce at competitive prices. |
| Labor Costs | Use scheduling software to manage shifts efficiently and avoid unnecessary overtime. |
| Utilities | Switch to LED lighting and energy-efficient kitchen appliances to cut down on utility bills. |
| Marketing | Leverage social media campaigns and partner with local influencers for cost-effective promotion. |
| Cleaning Supplies | Train your team on the proper use of cleaning supplies to minimize waste and costs. |
| Equipment Maintenance | Keep a maintenance log to ensure regular checks and servicing of kitchen equipment. |
| Rent/Mortgage | Negotiate lease terms during renewal or consider relocating to a more affordable area. |
| Insurance | Review your insurance policies annually to ensure they meet your needs and compare rates for the best deal. |
| Packaging | Opt for cost-effective, eco-friendly packaging and offer incentives for customers who bring their own containers. |
| Tableware | Invest in durable, high-quality tableware that can withstand frequent use. |
| POS System | Select a POS system with essential features, low transaction fees, and integration capabilities. |
| Staff Training | Conduct regular training sessions in-house and utilize free online resources for staff development. |
| Waste Management | Implement a food waste tracking system to minimize waste and consider donating excess food. |
| Technology | Invest in multi-functional kitchen appliances and use management software for orders and inventory. |
| Linen and Laundry | Partner with a cost-effective linen service and consider using reusable napkins. |
| Menu Printing | Use digital menu boards or QR codes to reduce the need for printed menus. |
| Licensing and Permits | Stay updated with local regulations to avoid fines and ensure timely renewals. |
| Transportation | Optimize delivery routes to save on fuel costs and improve efficiency. |
| Office Supplies | Buy supplies in bulk and go paperless with digital order systems where possible. |
| Inventory Management | Use inventory management software to keep track of stock levels and reduce spoilage. |
| Pest Control | Schedule regular pest control services and maintain high cleanliness standards to prevent infestations. |
| Music and Entertainment | Use a streaming service for background music and consider hosting local musicians during off-peak hours. |
| Uniforms | Choose durable, easy-to-clean uniforms and provide a stipend for staff maintenance instead of using an external service. |
Copy the tactics of the best fast-food restaurants in the world!
There are fast-food restaurants that make way more money than you do. We have studied their tactics. Get them now!
Expenses that are just useless for a fast-food restaurant
Yes, some expenses for your fast-food restaurant are just unnecessary. They don't contribute to increasing revenue or improving customer experience.
| Fast-Food Expense | Reason It's Useless |
|---|---|
| Fancy Signage | Overly elaborate signs don't necessarily attract more customers and can be a drain on the budget. |
| Premium Beverage Brands | Most customers are satisfied with standard drink options, making premium brands unnecessary. |
| Extensive Menu Options | A large menu increases inventory costs and leads to more food waste. |
| High-End Kitchen Gadgets | Top-of-the-line kitchen gadgets are not always necessary and can be cost-prohibitive. |
| Paper Flyers | Traditional paper flyers often have a lower return on investment. Don’t include them in the marketing strategy of your fast-food restaurant. |
| Multiple Uniform Designs | Having various uniform designs increases costs without adding significant value to the customer experience. |
| Overstaffing | Having more staff than needed leads to higher labor costs without necessarily improving service quality. |
| Premium Music Subscriptions | Expensive music subscriptions often go unnoticed by customers. |
| Exotic Ingredients | Using rare ingredients can inflate costs and complicate supply chains. |
| Luxury Seating | High-end seating is not always appreciated by customers and can be a significant expense. |
| Custom Printed Wrappers | Personalized wrappers are a minor detail that most customers overlook, and they can be expensive. |
| Unnecessary Software | Paying for software with features you don’t use is a waste of resources. |
| Premium Bottled Water | Most customers are content with standard bottled water, making premium brands unnecessary. |
| Extra Delivery Vehicles | Maintaining a larger fleet than needed increases operational costs. |
| Excessive Membership Fees | Paying for multiple industry memberships often yields little benefit. |
| Frequent Renovations | Constantly updating decor and layout can be costly and disrupt operations. |
| Expensive Table Decorations | Elaborate decorations are often ignored by customers and add to the cost. |
| Luxury Tableware | Luxury tableware is prone to damage and expensive to replace, often going unnoticed by customers. |
| Too Many Staff Meetings | Too many meetings can reduce productivity and increase labor costs. |
| Expensive Menu Designs | Frequently redesigning menus is costly and often unnecessary. |
| Unused Promotional Items | Ordering more promotional items than needed leads to waste and unnecessary expense. Get our marketing budget planner template. |
| Paid Directory Listings | Many free listing options are available, making paid listings often redundant. |
| High-End Catering Equipment | Specialized catering equipment is often unnecessary and adds to costs without a proportional benefit. |
Stop working with a tight budget for your fast-food restaurant!
Managing a budget for a fast-food restaurant when funds are tight can feel overwhelming. It's like being trapped in a cycle where any unexpected expense can throw you off balance.
This constant pressure makes it nearly impossible to invest in growth initiatives, leaving you always scrambling to cover costs. It's a life filled with stress and sleepless nights.
Yes, you can continue down this path, pinching pennies and barely making ends meet. But there's another part of the equation you might be overlooking. Instead of just trying to cut costs, you can focus on growing your revenue. More income means more breathing room and more money to reinvest in your business.
And no, you don't necessarily have to spend money to grow. There are plenty of zero-cost initiatives and strategies that can help you increase your revenue by 10%, 20%, or more. We've detailed all of these strategies in our guides, after studying dozens of fast-food restaurants just like yours. Get them now!
Make your fast-food restaurant more profitable
We have studied the strategies of the best fast-food restaurants in the world. All their tactics are explained in our pack!
