Introduction: Restaurants Run on More Than Recipes

Every chef knows how to make a soufflé rise, but ask them about a P&L statement, and suddenly the kitchen gets very quiet. Restaurants aren’t just about food—they’re businesses. And like any business, they succeed or fail based on financial strategy.

Enter Tom Sernett, a seasoned restaurant finance expert who has laid out 7 financial strategies that can help restaurants not only survive but thrive.

This isn’t about turning chefs into accountants—it’s about giving restaurateurs the tools to keep the lights on, pay the staff, and maybe even buy that new espresso machine without selling their soul to a lender.

So grab your calculator (and maybe a cocktail), and let’s break down Sernett’s strategies—served with a side of humor.

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Strategy 1: Master the Budget (Yes, You Actually Need One)

Budgeting isn’t sexy. Nobody posts Instagram stories of their Excel sheets. But Tom Sernett insists: restaurants without budgets are like kitchens without recipes—chaos guaranteed.

• What It Means: Plan your expected revenue and expenses for the year.
• Why It Matters: Without a budget, you can’t measure success (or failure).
• How to Do It: Break expenses into categories—food costs, labor, rent, marketing—and assign targets.

Pro tip: If you’re guessing numbers, it’s not budgeting—it’s gambling.

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Strategy 2: Control Food Costs Like a Hawk

The average restaurant spends 28–35% of revenue on food. Overshoot that, and suddenly your truffle fries aren’t just fancy—they’re financial sabotage.

• Menu Engineering: Highlight high-margin items (hello, pasta and cocktails).
• Portion Control: Customers want value, not a mountain.
• Vendor Negotiation: Build relationships and renegotiate pricing regularly.

As Sernett says: “Every penny saved on food costs goes straight to profit.”

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Strategy 3: Manage Labor Costs Without Killing Morale

Labor is usually the largest restaurant expense (often 30–35% of sales). Cut too much, and service suffers. Overspend, and profit disappears.

Sernett’s approach:

• Use scheduling software to match staffing to peak hours.
• Cross-train staff (your host can also run desserts? Beautiful).
• Invest in retention—turnover costs more than raises.

Remember: happy staff = happy guests = healthy bottom line.

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Strategy 4: Know Your Numbers (KPIs Are Not Just Buzzwords)

Tom Sernett stresses the importance of key performance indicators (KPIs). You can’t improve what you don’t measure.

Key metrics every restaurant should track:

• Prime Costs: Food + labor. Keep them under 60–65%.
• Table Turn Time: Faster turns = higher revenue.
• Average Check Size: Train servers to upsell (yes, guac is extra).
• Cash Flow: The single most important number.

If you don’t know your KPIs, you’re basically driving blindfolded.

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Strategy 5: Optimize Cash Flow (Because Bills Don’t Wait)

Restaurants don’t go under because of poor sales alone—they die from cash flow problems. Sernett emphasizes: “It’s not what you make, it’s what you keep.”

• Negotiate vendor terms (net 30 instead of net 15 can save lives).
• Spread out expenses where possible.
• Maintain a cash reserve for emergencies (yes, even grease trap disasters).

Cash flow is like oxygen—ignore it, and you’ll suffocate quickly.

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Strategy 6: Use Debt Wisely (Loans Aren’t Evil, Just Dangerous)

Debt gets a bad rap, but Sernett reminds us: debt can fuel growth if managed well.

Good uses of debt:

• Expansion into a proven new location.
• Equipment that boosts efficiency.
• Marketing campaigns with measurable ROI.

Bad uses of debt:

• Covering routine payroll every month.
• Funding your cousin’s DJ nights.

Rule of thumb: If the loan won’t increase revenue or reduce expenses, don’t take it.

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Strategy 7: Regular Financial Checkups (Not Just at Tax Time)

You wouldn’t wait until your soufflé collapses to check the oven—so why wait until tax season to check your financials?

Sernett recommends:

• Weekly reports: Sales, labor, food costs.
• Monthly reviews: P&L, balance sheet, cash flow.
• Quarterly strategy sessions: Adjust budget and goals.

Restaurants that monitor finances regularly are more agile—and agility is the difference between thriving and barely surviving.

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Humor Break: 7 Restaurant “Financial Strategies” That Don’t Work

1. “Just sell more cocktails.”
2. “Cross your fingers and pray.”
3. “Maybe the IRS won’t notice.”
4. “Ignore bills until they magically vanish.”
5. “Use Monopoly money for payroll.”
6. “Bet it all on lobster season.”
7. “Hope that influencer’s free dinner will fix everything.”

Spoiler: None of these work. Listen to Tom Sernett instead.

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The Real Value of Tom Sernett’s 7 Strategies

Sernett’s approach isn’t revolutionary—it’s practical. The value lies in discipline: building systems that keep restaurants profitable regardless of fads or crises.

His strategies help:

• Reduce financial stress for owners.
• Build sustainable margins.
• Position restaurants for long-term growth.

In a business where 60% fail within five years, that’s priceless.

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Conclusion: Finance is the Secret Ingredient

Great food brings customers in once. Great financial management brings them back year after year.

Tom Sernett’s 7 strategies remind us that running a restaurant isn’t just about what happens in the kitchen—it’s about what happens in QuickBooks.

So yes, keep perfecting your signature burger. But also: budget, track KPIs, manage cash flow, and schedule those financial checkups. Because in 2025, hope is not a strategy—but financial discipline is.

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❓ FAQ Section

1. Who is Tom Sernett?

Tom Sernett is a restaurant finance expert known for helping operators build sustainable businesses through practical financial strategies.

2. What are Tom Sernett’s 7 financial strategies for restaurants?

They include budgeting, controlling food costs, managing labor, tracking KPIs, optimizing cash flow, using debt wisely, and regular financial checkups.

3. Why are financial strategies important for restaurants?

Restaurants often fail due to poor financial management, not food quality. Strong financial strategies improve profitability and long-term survival.

4. How can restaurants lower food costs?

Through portion control, vendor negotiation, and menu engineering to promote high-margin items.

5. How often should restaurants review finances?

Weekly for sales/labor, monthly for P&L and cash flow, and quarterly for strategic adjustments.