![How to plan and track the budget of your ramen shop [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-3_52af9344-aa10-4203-ab8a-32c5f92cb2ff.png?v=1715856617&width=1100)
If you don’t plan and track your ramen shop budget properly, you're setting yourself up for failure.
When we developed our strategy pack for ramen shop owners, we saw a lot of ramen shop 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 ramen shop's finances around and set you on the path to success!
Get the budget tracker tailored for ramen shops
Most ramen shop owners don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for ramen shops
Here is an example of a (very) detailed budget for a ramen shop, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for ramen shop 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 | $80 | $960 |
| 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 | 3 | $2,000 | $6,000 | $72,000 |
| 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. | $250 | $3,000 |
| Social Media Management | Managing social media accounts | $450 | $5,400 |
| Print Advertising | Flyers, posters, newspaper ads | $150 | $1,800 |
| Website Maintenance | Hosting, domain, updates | $120 | $1,440 |
| Email Marketing | Email campaigns and newsletters | $100 | $1,200 |
| Promotional Events | Special events and promotions | $180 | $2,160 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Equipment Maintenance | Regular maintenance of kitchen equipment | $450 | $5,400 |
| Uniforms | Staff uniforms and aprons | $180 | $2,160 |
| Licenses & Permits | Health permits, liquor licenses, etc. | $120 | $1,440 |
| POS System | Point of Sale software and hardware | $130 | $1,560 |
| Contingency Fund | Emergency repairs and unexpected costs | $500 | $6,000 |
| Office Supplies | Stationery, pens, printer ink, etc. | $100 | $1,200 |
| Staff Training | Training programs and materials | $200 | $2,400 |
Some ramen shops make 5x more profit than you!
We have studied the strategies of the best ramen shops in the world. Replicate them now!
What are the biggest expenses for a ramen shop?
Watch out for these pitfalls. Here are five major costs every ramen shop owner needs to consider, along with some tips on how to manage them effectively.
- Ingredients and broth costsThese can take a significant portion of your budget. You're dealing with fresh ingredients like noodles, vegetables, and meats, 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 premium ingredients that don’t add enough value to your dishes.
- Your ramen shop staffYour staff is essential, but paying for their wages, benefits, and training can be costly. This expense is always high because you need a certain number of employees to provide excellent service and keep operations running smoothly. 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 ramen shopPrime locations come with high rent, but they can attract more customers. Utilities like electricity, gas, and water are essential but can 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 large or too upscale for your needs.
- MarketingYou need to spread the word about your ramen shop, 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 occur if you invest in flashy campaigns without a clear return on investment.
- Kitchen equipment and maintenance costsThis includes everything from ramen cookers 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 ramen shop?
Here are practical tips to help you, as a ramen shop owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Food Costs | Source ingredients like noodles, broth, and toppings from local suppliers to get fresh, high-quality products at competitive prices. |
| Labor Costs | Use scheduling software to manage staff shifts efficiently and minimize overtime expenses. |
| Utilities | Install energy-efficient kitchen equipment and LED lighting to reduce utility bills. |
| Marketing | Engage with your community by running social media contests for your ramen shop and collaborating with local food bloggers for free promotion. |
| Cleaning Supplies | Train your staff on the proper use of cleaning supplies to minimize waste and reduce costs. |
| Equipment Maintenance | Keep a maintenance log for regular checks and servicing of kitchen equipment to avoid costly repairs. |
| Rent/Mortgage | Negotiate lease terms during renewal or consider relocating to a more affordable area. |
| Insurance | Review your insurance policies regularly to ensure they meet your current needs and compare rates annually. |
| Packaging | Opt for cost-effective, eco-friendly packaging and offer discounts to customers who bring their own containers. |
| Tableware | Invest in high-quality, durable tableware that can withstand frequent use and reduce replacement costs. |
| POS System | Choose a POS system that offers essential features with low transaction fees and integrates seamlessly with other systems. |
| Staff Training | Conduct regular in-house training sessions and utilize free online resources to keep your staff well-trained. |
| Waste Management | Implement a food waste tracking system to minimize waste and consider donating excess food to local shelters. |
| Technology | Invest in multi-functional kitchen appliances and use restaurant management software for reservations and orders. |
| Linen and Laundry | Partner with a cost-effective linen service and consider using reusable napkins and tablecloths. |
| Menu Printing | Use digital menu boards or QR codes for menu access to cut down on printing costs. |
| Licensing and Permits | Stay up-to-date with local regulations to avoid fines and costly renewals. |
| Transportation | Plan delivery routes efficiently to save on fuel costs and time. |
| Office Supplies | Buy office supplies in bulk and go paperless where possible with digital order systems. |
| Inventory Management | Use inventory management software to track 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 host local musicians during off-peak times to attract more customers. |
| 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 ramen shops in the world!
There are ramen shops that make way more money than you do. We have studied their tactics. Get them now!
Expenses that are just useless for a ramen shop
Yes, some expenses for your ramen shop are just unnecessary. They don't contribute to increasing revenue or improving customer experience.
| Ramen Shop Expense | Reason It's Useless |
|---|---|
| Luxurious Interior Design | Overly extravagant interiors don't necessarily attract more customers and can be a drain on the budget. |
| Premium Sake Brands | Unless you are a high-end establishment, most customers are satisfied with mid-range options. |
| Extensive Menu Options | A large menu increases inventory costs and leads to more food waste. |
| Top-Tier Kitchen Equipment | High-end kitchen equipment is not always necessary and can be cost-prohibitive. |
| Paper Flyers | Traditional paper ads often have a lower return on investment. Don’t include them in the marketing strategy of your ramen shop. |
| Multiple Uniform Styles | Having various uniform styles increases costs without adding significant value to the customer experience. |
| Overstaffing | Overstaffing leads to higher labor costs without necessarily improving service quality. |
| Expensive Subscription Services | Costly subscriptions for music or magazines often go unnoticed by customers. |
| Exotic Ingredients | Using rare ingredients can inflate costs and complicate supply chains. |
| High-End Seating | Luxurious seating is not always appreciated by customers and can be a significant expense. |
| Custom Printed Chopsticks | Personalized chopsticks 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 filtered tap water, making expensive bottled water 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. |
| Elaborate Table Centerpieces | Elaborate centerpieces 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 Materials | 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. |
| Specialized Catering Equipment | Specialized catering equipment is often unnecessary and adds to costs without a proportional benefit. |
Stop working with a tight budget for your ramen shop!
Managing a budget for a ramen shop when funds are tight can feel like a nightmare. It's like being in a pressure cooker where any unexpected expense can boil over and drown you.
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 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 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 ramen shops just like yours. Get them now!
Make your ramen shop more profitable
We have studied the strategies of the best ramen shops in the world. All their tactics are explained in our pack!
