Real data about restaurant performance is hard to come by. Irrespective of whether the restaurant is making a profit or loss, I see people invariably lie about figures.
So, here is something that might help - the past six month figures of an actual non-veg restaurant, which would go unnamed :)
It is amazing the amount of money you can make by just cutting wastage. Follow a few simple principles and you can dramatically increase profits.
1. Track all expenses every day.
2. Check stock every day
3. Get an item by item report printed at the end of each day and calculate the amount of stock that should have been consumed. Compare it with actual stock consumption. Charge the difference back to the kitchen.
4. If the customer has a complaint, never argue. Replace or refund.
5. Dramatically reduce gas usage by
a. Cooking covered
c. Pressure cooking
d. Regular cleaning of burners.
5. 'Taste' is a myth. It differs from person to person. Follow general cooking principles ( use fresh ingredients, do not use too much salt/ spices, do not burn stuff ) and you should be fine. On top of this remember the key characteristics for recipes - an Idli should be white and spongy, a parota whould be flaky and crumbly, a dosa should be crispy. Focus on these as you'll never be able to track the elusive taste. If you shoot for 'good' taste, you are dealing with a quantity you'll never measure or compare - and that is really frustrating !
6. Instead of focussing on the elusive taste, focus on standardisation. Standardise techniques and recipes so that you get an uniform result every time. Put the quality into equipment and techniques, rather than depending on the chef. Chef dependancy is the bane of many small restaurants ! Remember, standardisation beats taste anytime, as Mcdonald's demonstrates !These principles were put in place during April and you can see the result by comparing March figures
with August figures. Sales goes up by around Rs.240,000 but production expenses rise by just Rs.60,000.
To put things in perspective, this restaurant does around Rs. 30,000 / day, whereas the Vadalapani Saravanabhavan, one of the top restaurants in Chennai, does around Rs.450,000 a day !
As a thumb rule, each 4 seater table in a restaurant generates around Rs.1000 a day. For reasonably well managed restaurants, it goes up to 2000 a day/ table. For popular restaurants, it can reach 4000 a day/ table.
If you are planning to open your own restaurant, remember it is easy to make money, if you put the right systems in place at the very beginning !