{"id":1210,"date":"2025-05-22T10:02:45","date_gmt":"2025-05-22T10:02:45","guid":{"rendered":"https:\/\/savefryoil.com\/blog\/?p=1210"},"modified":"2025-08-18T12:28:14","modified_gmt":"2025-08-18T12:28:14","slug":"mastering-restaurant-finance","status":"publish","type":"post","link":"https:\/\/savefryoil.com\/blog\/mastering-restaurant-finance\/","title":{"rendered":"Mastering Restaurant Finance: Restaurateur Susan Tung&#8217;s Advice on Rent and Prime Costs"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>Restaurant success depends on mastering key financial ratios, with Hanoi House owner Susan Tung sharing that proper cost management is the foundation for longevity in the competitive food service industry.<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Rent control:<\/strong> Keep rent expenses below 11% of your net sales to maintain healthy restaurant profit margins<\/li>\n\n\n\n<li><strong>Prime cost management:<\/strong> Ensure labor and food costs combined stay well under 65% of revenue<\/li>\n\n\n\n<li><strong>Weekly tracking:<\/strong> Monitor financial performance weekly rather than waiting for monthly reports when it&#8217;s too late to correct issues<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Running a successful restaurant isn&#8217;t just about creating amazing food\u2014it&#8217;s about understanding the dollars and cents that keep your doors open! On a recent episode of &#8220;Restaurant Talk&#8221; from Save Fry Oil, host <a href=\"https:\/\/www.tiktok.com\/@chefway\" target=\"_blank\" rel=\"noopener\">Chef Way<\/a> (Waymond Wesley II) sat down with special guest Susan Tung, owner of the successful <a href=\"https:\/\/www.hanoihouseptbo.com\/\" target=\"_blank\" rel=\"noopener\">Hanoi House<\/a> restaurant in Peterborough, Ontario. Susan shared some game-changing financial wisdom that could save your restaurant from becoming another industry statistic!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Commercial Restaurant Overhead Costs: The Rent Rule You Can&#8217;t Ignore<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;Your rent needs to fall under 11% of the net sales, based on your projected sales,&#8221; Susan explains, calling this the &#8220;very first step&#8221; in restaurant financial planning.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Think about it this way: If your monthly rent is $5,000, your restaurant needs to bring in about $45,500 in monthly sales just to keep your rent percentage healthy. Susan has seen too many passionate food lovers signing leases that eat up &#8220;as high as 30-35%&#8221; of their income!<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;I&#8217;ve watched so many restaurants close because they didn&#8217;t understand this simple rule,&#8221; Susan shares. &#8220;They loved making food but had no clue about restaurant profit calculations.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With today&#8217;s rising commercial property costs, understanding your restaurant space requirements and doing the math before signing that lease could be the difference between success and struggle.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Restaurant Cost Management: Tackling Prime Costs Like a Pro<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Your &#8220;prime costs&#8221; (the combined expenses of labor and food) need serious attention too.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;The next thing is you gotta track your prime costs,&#8221; Susan advises. &#8220;Your labor and your cost of goods combined&#8230; ensuring that stays well below, you know, 65%.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Restaurant industry benchmarks show this is right on the money. After your rent (under 11%) and prime costs (under 65%), the remaining 24% needs to cover utilities, marketing, and\u2014hopefully\u2014actual profit!<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Smart restaurant inventory management and carefully planned staff scheduling can keep these numbers in check. Consider:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Creating precise recipes with portion costs calculated<\/li>\n\n\n\n<li>Implementing inventory tracking systems<\/li>\n\n\n\n<li>Cross-training staff for efficiency<\/li>\n\n\n\n<li>Using sales forecasting to plan labor needs<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Want to hear more stories and advice from the restaurant world? Don&#8217;t miss the full episode of &#8220;Restaurant Talk&#8221; \u2013 where we get real about what it takes to succeed in the food service industry!<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/restaurant-talk-by-save-fry-oil.castos.com\/episodes\/chef-way-and-guest-susan-tung-share-profit-tips-and-staff-management-gold\" target=\"_blank\" rel=\"noopener\">Listen to Restaurant Talk<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Commercial Kitchen Cost Management: Tackling Prime Costs Like a Pro<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/savefryoil.com\/blog\/wp-content\/uploads\/2025\/05\/Inserting-Frylow-in-the-Deep-Fryer-1024x576.webp\" alt=\"Hand inserting Frylow device in the deep fryer\n\" class=\"wp-image-1211\" srcset=\"https:\/\/savefryoil.com\/cdn-cgi\/image\/width=1024,height=576,fit=crop,quality=50,format=auto,onerror=redirect,metadata=none\/blog\/wp-content\/uploads\/2025\/05\/Inserting-Frylow-in-the-Deep-Fryer.webp 1024w, https:\/\/savefryoil.com\/cdn-cgi\/image\/width=300,height=169,fit=crop,quality=50,format=auto,onerror=redirect,metadata=none\/blog\/wp-content\/uploads\/2025\/05\/Inserting-Frylow-in-the-Deep-Fryer.webp 300w, https:\/\/savefryoil.com\/cdn-cgi\/image\/width=768,height=432,fit=crop,quality=50,format=auto,onerror=redirect,metadata=none\/blog\/wp-content\/uploads\/2025\/05\/Inserting-Frylow-in-the-Deep-Fryer.webp 768w, https:\/\/savefryoil.com\/cdn-cgi\/image\/quality=50,format=auto,onerror=redirect,metadata=none\/blog\/wp-content\/uploads\/2025\/05\/Inserting-Frylow-in-the-Deep-Fryer.webp 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Your \u201cprime costs\u201d (the combined expenses of labor and food) need serious attention too.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe next thing is you gotta track your prime costs,\u201d Susan advises. \u201cYour labor and your cost of goods combined\u2026 ensuring that stays well below, you know, 65%.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Cost Optimization Tip: Don\u2019t forget your oil spend. By adding Frylow\u2019s electron\u2011charging ceramic tiles to your existing oil filtration system, you can extend oil life by up to 50%, reduce oil absorption in every batch, and shave several points off your COGS\u2014helping you hit that sub\u201165% prime\u2011cost target even faster.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Restaurant industry benchmarks show this is right on the money. After your rent (under 11%) and prime costs (under 65%), the remaining 24% needs to cover utilities, marketing, and hopefully, actual profit!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Financial Analysis: Track Numbers or Fail Fast<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Susan&#8217;s biggest regret? Not watching her numbers closely enough when first opening.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;I was so excited about marketing and growing the business that I wasn&#8217;t focused on my numbers,&#8221; she admits. &#8220;That was a huge mistake.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Waiting for monthly Profit and Loss (P&amp;L) statements means getting crucial data way too late. &#8220;If you&#8217;re getting January&#8217;s numbers in March, it&#8217;s already too late to fix problems,&#8221; Susan warns.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Chef Way agrees completely. From his experience with bank underwriting, he knows that financial projections aren&#8217;t just paperwork\u2014they&#8217;re survival tools. As he puts it, &#8220;The bank needs to see we understand the business side, not just the creative cooking part.&#8221;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Best Practices for Commercial Restaurant Financial Health<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The restaurant industry failure rate isn&#8217;t a myth\u2014it&#8217;s why professional restaurant accounting practices matter from day one:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Set up weekly financial check-ins, not just monthly reviews<\/li>\n\n\n\n<li>Use restaurant management software that gives real-time data<\/li>\n\n\n\n<li>Understand your break-even point (when Susan&#8217;s friend told Chef Way his restaurant needs to make $1.6 million annually or close)<\/li>\n\n\n\n<li>Create a cash flow forecast that accounts for seasonal changes<\/li>\n\n\n\n<li>Build relationships with multiple suppliers to manage food cost volatility<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">Remember Susan&#8217;s golden rule: &#8220;My biggest advice for anyone opening a restaurant is know your numbers. Period.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Want to hear more stories and advice from the restaurant world? Don&#8217;t miss the full episode of &#8220;Restaurant Talk&#8221; \u2013 where we get real about what it takes to succeed in the food service industry!<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/restaurant-talk-by-save-fry-oil.castos.com\/episodes\/chef-way-and-guest-susan-tung-share-profit-tips-and-staff-management-gold\" target=\"_blank\" rel=\"noopener\">Listen to Restaurant Talk&nbsp;<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Optimize Your Oil Costs<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Smart restaurateurs track every expense line. With Frylow, you\u2019ll reduce oil absorption, extend oil life, and cut your monthly oil\u2011change frequency in half, so your food\u2011cost % stays lean and your prime\u2011cost ratio keeps you profitable.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By following these restaurant financial tips from someone who&#8217;s weathered the industry storms, you&#8217;ll be building your culinary dreams on a foundation that can actually support them!<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Ready to cut oil costs and boost consistency?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Request your<a href=\"https:\/\/savefryoil.com\/frylow\/us\/\"> free Frylow cost savings<\/a> and see how much you can save with no risk trial, just results.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>FAQ<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>In what way does Frylow boost the lifespan of frying oil?<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Frylow\u2019s UV\u2011reflective ceramic tiles restore lost electrons in your oil to slow oxidation. Less\u2011oxidized oil stays lighter, transfers heat more efficiently, resists breakdown, and can last up to 50% longer.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>With Frylow installed, how often should I replace my fryer oil?<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Most kitchens see oil\u2011change frequency cut by about half. If you currently swap oil twice weekly, you can usually shift to once a week while still meeting health standards.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Can I use Frylow with my existing fryer setup?<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Yes. Frylow simply sits in your fryer vat alongside your oil\u2014no retrofits, extra plumbing, or moving parts needed. It works with virtually every commercial deep fryer.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>When will I begin to see savings on my oil budget?<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Operators typically notice lower oil costs within the first month. Most achieve full return on investment in six months or less as oil\u2011absorption and waste drop.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>What maintenance does Frylow require?<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">There are no extra tasks. Continue your usual filtering and cleaning routine. The ceramic tiles never need replacing and include a 5\u2011year warranty.<br><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Restaurant success depends on mastering key financial ratios, with Hanoi House owner Susan Tung sharing that proper cost management is the foundation for longevity in the competitive food service industry&#8230;.<\/p>\n","protected":false},"author":2,"featured_media":1212,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[2,14,6,9],"tags":[],"class_list":["post-1210","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-strategic-restaurant-cost-management","category-case-studies","category-efficient-kitchen-practices","category-restaurant-operations"],"_links":{"self":[{"href":"https:\/\/savefryoil.com\/blog\/wp-json\/wp\/v2\/posts\/1210","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/savefryoil.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/savefryoil.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/savefryoil.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/savefryoil.com\/blog\/wp-json\/wp\/v2\/comments?post=1210"}],"version-history":[{"count":3,"href":"https:\/\/savefryoil.com\/blog\/wp-json\/wp\/v2\/posts\/1210\/revisions"}],"predecessor-version":[{"id":1308,"href":"https:\/\/savefryoil.com\/blog\/wp-json\/wp\/v2\/posts\/1210\/revisions\/1308"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/savefryoil.com\/blog\/wp-json\/wp\/v2\/media\/1212"}],"wp:attachment":[{"href":"https:\/\/savefryoil.com\/blog\/wp-json\/wp\/v2\/media?parent=1210"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/savefryoil.com\/blog\/wp-json\/wp\/v2\/categories?post=1210"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/savefryoil.com\/blog\/wp-json\/wp\/v2\/tags?post=1210"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}