![How to plan and track the budget of your Mexican restaurant [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-3_7df62cc9-0ca1-4fbf-9496-05844904b6ed.png?v=1715856618&width=1100)
If you don’t plan and track your Mexican restaurant's budget properly, you're setting yourself up for failure.
When we developed our strategy pack for Mexican 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 from their delicious tacos, enchiladas, and margaritas.
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 Mexican restaurant's finances around and set you on the path to success!
Get the budget tracker tailored for Mexican restaurants
Most Mexican restaurant owners don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for Mexican restaurants
Here is an example of a (very) detailed budget for a Mexican restaurant, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for restaurant space | $4,500 | $54,000 |
| Electricity | Power consumption for kitchen & dining | $700 | $8,400 |
| Water | Water usage | $250 | $3,000 |
| Gas | Gas for cooking and heating | $350 | $4,200 |
| Internet & Phone | Internet service and business phone | $120 | $1,440 |
| Waste Removal | Garbage and recycling services | $90 | $1,080 |
| Pest Control | Monthly pest control services | $60 | $720 |
| Insurance | Property and liability insurance | $450 | $5,400 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| Head Chef | 1 | $4,200 | $4,200 | $50,400 |
| Sous Chef | 1 | $3,200 | $3,200 | $38,400 |
| Line Cooks | 2 | $2,200 | $4,400 | $52,800 |
| Dishwasher | 1 | $1,800 | $1,800 | $21,600 |
| Servers | 4 | $2,100 | $8,400 | $100,800 |
| Host/Hostess | 1 | $2,000 | $2,000 | $24,000 |
| Manager | 1 | $3,800 | $3,800 | $45,600 |
3. Food & Beverage Costs
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Food Inventory | Fresh produce, meats, seafood, etc. | $9,000 | $108,000 |
| Beverage Inventory | Alcoholic and non-alcoholic beverages | $2,500 | $30,000 |
| Condiments & Spices | Seasonings, sauces, dressings, etc. | $600 | $7,200 |
| Cleaning Supplies | Detergents, sanitizers, etc. | $250 | $3,000 |
| Paper Goods | Napkins, paper towels, to-go containers | $350 | $4,200 |
| Kitchen Utensils | Smallwares, cutlery, and kitchen tools | $250 | $3,000 |
| Dishware & Glassware | Plates, bowls, glasses, etc. | $250 | $3,000 |
4. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, Facebook Ads, etc. | $350 | $4,200 |
| Social Media Management | Managing social media accounts | $550 | $6,600 |
| Print Advertising | Flyers, posters, newspaper ads | $250 | $3,000 |
| Website Maintenance | Hosting, domain, updates | $120 | $1,440 |
| Email Marketing | Email campaigns and newsletters | $180 | $2,160 |
| Promotional Events | Special events and promotions | $250 | $3,000 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Equipment Maintenance | Regular maintenance of kitchen equipment | $550 | $6,600 |
| Uniforms | Staff uniforms and aprons | $220 | $2,640 |
| Licenses & Permits | Health permits, liquor licenses, etc. | $120 | $1,440 |
| POS System | Point of Sale software and hardware | $180 | $2,160 |
| Contingency Fund | Emergency repairs and unexpected costs | $550 | $6,600 |
| Office Supplies | Stationery, pens, printer ink, etc. | $120 | $1,440 |
| Staff Training | Training programs and materials | $220 | $2,640 |
Some Mexican restaurants make 5x more profit than you!
We have studied the strategies of the best Mexican restaurants in the world. Replicate them now!
What are the biggest expenses for a Mexican restaurant?
Be mindful of these significant expenses. Here are five major costs every Mexican restaurant owner needs to consider, along with some tips on how to manage them effectively.
- Food and beverage costsThese can take a substantial portion of your budget. You're dealing with perishables like avocados, tomatoes, and fresh herbs, and prices can vary based on seasonality, supply chain issues, and quality. To keep these costs in check, focus on portion control, negotiate better prices with suppliers, and minimize waste. It's easy to overspend by buying too much or opting for high-end ingredients that don’t add enough value to your dishes.
- The staff at your restaurantYour staff is your backbone, but paying for their wages, benefits, and training can be expensive. This cost is always high because you need a certain number of employees to provide excellent service and keep things running smoothly. You can optimize labor costs by scheduling efficiently, cross-training staff, and monitoring productivity. However, be careful not to underpay or overwork your staff, as this can lead to high turnover and poor service.
- Rent and utilities of your restaurantPrime locations come with high rent, but they can attract more customers. Utilities like electricity, gas, and water are essential but add up quickly. To optimize these costs, negotiate favorable lease terms and invest in energy-efficient appliances and lighting. Overspending often happens when you choose a location that's too big or too fancy for your needs.
- MarketingYou need to get the word out about your restaurant, but advertising can be pricey, whether it's online ads, social media campaigns, or traditional media. Optimize this expense by focusing on cost-effective methods like the ones we give in our pack. Overspending can happen if you invest in flashy campaigns without a clear return on investment.
- Kitchen equipment and maintenance costsThis includes everything from kitchen appliances to dining furniture. These are expensive because quality equipment and regular maintenance are crucial for smooth operations and customer satisfaction. Optimize by investing in durable, energy-efficient equipment and maintaining it regularly to avoid costly breakdowns. You can overspend by going for the latest high-tech gadgets you don’t really need.
How to spend less with your Mexican restaurant?
Here are practical tips to help you, as a Mexican restaurant owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Food Costs | Partner with local farmers and markets for fresh, seasonal ingredients like avocados, tomatoes, and peppers at lower prices. |
| Labor Costs | Implement a scheduling software to optimize staff hours and reduce overtime, especially during peak times like Taco Tuesdays and weekend fiestas. |
| Utilities | Install LED lighting and energy-efficient kitchen equipment to save on electricity, especially for high-use items like tortilla presses and fryers. |
| Marketing | Run social media contests for your Mexican restaurant and collaborate with local influencers for free exposure. Highlight special events like Cinco de Mayo and Dia de los Muertos. |
| Cleaning Supplies | Train staff on efficient use of cleaning supplies to reduce waste, ensuring the kitchen and dining areas are spotless for a great dining experience. |
| Equipment Maintenance | Set up a maintenance log for regular equipment checks and servicing, especially for essential items like grills and blenders. |
| Rent/Mortgage | Negotiate lease terms during renewal or consider moving to a less expensive location, perhaps in a vibrant neighborhood with a strong community feel. |
| Insurance | Regularly review insurance policies to ensure they meet current needs and compare rates annually to get the best deal. |
| Packaging | Use cost-effective, eco-friendly packaging for takeout orders and offer discounts for customers bringing their own containers. |
| Tableware | Purchase high-quality, durable tableware that can withstand frequent use, especially for items like molcajetes and ceramic plates. |
| POS System | Choose a POS system that offers essential features with low transaction fees and integrates with other systems, like online ordering platforms. |
| Staff Training | Conduct regular in-house training sessions and use free online resources to keep staff knowledgeable about menu items and customer service. |
| Waste Management | Implement a food waste tracking system to minimize waste and donate excess food to local shelters or community programs. |
| Technology | Invest in multi-functional kitchen appliances and utilize restaurant management software for reservations and orders to streamline operations. |
| Linen and Laundry | Partner with a cost-effective linen service and consider reusable napkins and tablecloths to reduce ongoing costs. |
| Menu Printing | Use digital menu boards or QR codes for menu access to reduce printing costs and make it easy to update seasonal specials. |
| Licensing and Permits | Stay up-to-date with local regulations to avoid fines and costly renewals, especially for health and safety standards. |
| Transportation | Plan delivery routes to maximize efficiency and reduce fuel costs, ensuring timely delivery of fresh ingredients and takeout orders. |
| Office Supplies | Purchase supplies in bulk and go paperless where possible with digital order systems to save on costs and reduce clutter. |
| Inventory Management | Use inventory management software to track stock levels and reduce spoilage, ensuring you always have fresh ingredients on hand. |
| Pest Control | Schedule monthly pest control services and maintain cleanliness standards to prevent infestations, keeping your restaurant safe and hygienic. |
| Music and Entertainment | Use a streaming service for background music and host local musicians during off-peak times to create a lively atmosphere. |
| Uniforms | Choose durable, easy-to-clean uniforms and offer staff a stipend for maintenance instead of using an external service. |
Copy the tactics of the best Mexican restaurants in the world!
There are Mexican restaurants that make way more money than you do. We have studied their tactics. Get them now!
Expenses that are just useless for a Mexican restaurant
Yes, some expenses for your Mexican restaurant are just unnecessary. They don't contribute to increasing revenue or improving customer experience.
| Restaurant Expense | Reason It's Useless |
|---|---|
| Expensive Decorations | Overly lavish decorations don't necessarily attract more customers and can be a drain on the budget. Simple, authentic Mexican decor can be just as effective. |
| Premium Tequila Brands | Unless you are a high-end bar, most customers are satisfied with mid-range options for their margaritas and cocktails. |
| Excessive Menu Items | A large menu increases inventory costs and leads to more food waste. Focus on popular Mexican dishes that your customers love. |
| High-End Equipment | Top-of-the-line kitchen equipment is not always necessary and can be cost-prohibitive. Reliable, mid-range equipment can do the job just as well. |
| Paper Advertising | Traditional paper ads often have a lower return on investment. Don’t include them in the marketing strategy of your restaurant. Focus on digital marketing instead. |
| Multiple Uniform Styles | Having various uniform styles increases costs without adding significant value to the customer experience. A simple, consistent look is more effective. |
| Excessive Staff | Overstaffing leads to higher labor costs without necessarily improving service quality. Optimize your staffing levels based on peak hours. |
| Premium Subscription Services | Expensive subscriptions for music or magazines often go unnoticed by customers. Traditional Mexican music can create a great atmosphere without the high cost. |
| Exclusive Ingredients | Using rare ingredients can inflate costs and complicate supply chains. Stick to authentic, readily available Mexican ingredients. |
| Costly Furniture | High-end furniture is not always appreciated by customers and can be a significant expense. Comfortable, durable furniture is more practical. |
| Custom Printed Napkins | Personalized napkins are a minor detail that most customers overlook, and they can be expensive. Plain napkins are just as effective. |
| Unnecessary Software | Paying for software with features you don’t use is a waste of resources. Choose software that meets your specific needs. |
| Premium Water Brands | Most customers are content with filtered tap water, making expensive bottled water unnecessary. |
| Extra Delivery Vehicles | Maintaining a larger fleet than needed increases operational costs. Optimize your delivery routes and vehicle usage. |
| Excessive Membership Fees | Paying for multiple industry memberships often yields little benefit. Choose memberships that offer real value. |
| Overly Frequent Renovations | Constantly updating decor and layout can be costly and disrupt operations. Stick to occasional, necessary updates. |
| Expensive Table Centerpieces | Elaborate centerpieces are often ignored by customers and add to the cost. Simple, authentic Mexican decorations are more effective. |
| High-End Tableware | Luxury tableware is prone to damage and expensive to replace, often going unnoticed by customers. Durable, attractive tableware is a better choice. |
| Excessive Staff Meetings | Too many meetings can reduce productivity and increase labor costs. Keep meetings concise and focused. |
| Expensive Menu Designs | Frequently redesigning menus is costly and often unnecessary. A well-designed, durable menu can last a long time. |
| Unused Promotional Materials | Ordering more promotional items than needed leads to waste and unnecessary expense. Get our marketing budget planner template to optimize your spending. |
| Paid Directory Listings | Many free listing options are available, making paid listings often redundant. Utilize free listings effectively. |
| High-End Catering Equipment | Specialized catering equipment is often unnecessary and adds to costs without a proportional benefit. Use versatile, cost-effective equipment instead. |
Stop working with a tight budget for your Mexican restaurant!
Managing a budget for a Mexican restaurant when funds are tight can feel like a nightmare. It's like being trapped in a never-ending fiesta where any unexpected expense can throw you off balance.
This constant pressure makes it nearly impossible to invest in growth projects, leaving you always chasing after expenses. It's a life filled with stress and sleepless nights.
Yes, you can continue down this path, scraping together pesos 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 spend.
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 Mexican restaurants just like yours. Get them now!
Make your Mexican restaurant more profitable
We have studied the strategies of the best Mexican restaurants in the world. All their tactics are explained in our pack!
