Costs02/15/2026
Financial Management
Money in, money out — every dong must be tracked
3-6 months Cash Reserves(of operating costs)Weekly P&L ReviewAlways true Cash Flow > Profit
Financial Reports to Track
Weekly
P&L (Profit & Loss)
Revenue - Costs = Profit/Loss. Three losing weeks in a row → take action immediately.
Daily
Cash Flow
Actual cash on hand. Being profitable on paper but having no cash in the till = still dead.
Weekly
Food Cost %
= Total COGS purchased / Total revenue. Compare against theoretical food cost.
Monthly
Break-even Tracking
How many more months to payback? Are you on track?
Cash Flow — F&B's Silent Killer
- >You collect cash IMMEDIATELY (customers pay upfront) but pay suppliers LATER (7-30 day terms) → creating the illusion of "having money." In reality, that cash already belongs to your suppliers.
- >Peak season revenue (Lunar New Year, holidays) does not repeat every month. Save peak earnings to cover low season (February-March typically drops 15-25%).
- >Fixed costs (rent, salaries) must be paid REGARDLESS of revenue. This is why "running out of cash = closing down."
- >Rule: Always keep at least 2 months of operating costs in your account. Below this threshold = red alert.
- >Don't withdraw profits too early. For the first 6 months, reinvest 100% of profits (if any) back into the business.
Healthy Investment Capital Structure
Own Capital≥60%At least 60% of total investment. Too much debt = interest pressure.
Borrowed Capital≤40%Interest rates at 8-15%/year. Factor into monthly costs.
Working Capital15-20%Of total investment. For ingredient turnover and payroll.
Contingency10-15%For unplanned costs: construction delays, repairs, force majeure.
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