Financial Lessons We Learned From The Restaurant Industry

By: Jeff Heybruck

Few industries test operational and financial discipline like the restaurant business. Margins are thin, turnover is high, and costs can shift overnight. In the restaurant industry, strict financial discipline isn’t optional—it’s survival. Success depends on running lean and watching the numbers closely. But this level of financial rigor is good practice for businesses in any industry.

Below, our CFOs share five restaurant-inspired financial lessons that support stronger, more resilient operations for any business.

1) Know Your “Average Ticket Size”

In a well-run restaurant, the owner doesn’t guess their average ticket size—they know it. That number drives how many customers they need to break even and whether they’re hitting profitability targets.

In any industry, there’s an equivalent: in e-commerce, average order value; in professional services, average monthly revenue per client or billable rate per hour; in construction, average revenue per job.

Adopting the same tracking discipline delivers a strategic advantage. Knowing this figure allows for more precise pricing, intentional upselling, and faster detection when performance starts to slip. Without it, profitability becomes a guessing game.

2) Rent Shouldn’t Eat Profits

In a fast-casual restaurant chain Lucrum worked with, rent above 10% of gross revenue was a red flag. That kind of fixed cost can quietly sink a business—especially when sales dip seasonally.

This principle extends outside restaurants. We’ve seen service businesses lease shiny Class A office space with rent consuming a disproportionate share of revenue. While it may impress clients, it also bleeds cash every month. In slower periods, that oversized lease turns from a status symbol into a financial headache—or it simply drains cash that could fund expansion or provide a cushion. Smart operators size their space for function, not ego, keeping occupancy costs low enough that the business can stay afloat even in a bad month.

Action: Review rent as a percentage of revenue regularly. If it’s creeping up, renegotiate, downsize, or grow sales to justify the cost.

3) Think of Payroll in Terms of Performance

Restaurants live and die by labor cost. One slow night with too many people on the clock shows up immediately in the P&L. That’s why many aim to keep labor costs at or below ~30% of revenue, including both front and back of house.

The ratio may differ elsewhere, but the principle applies everywhere: labor, when managed and tracked relative to output, is a powerful lever for financial health.

• Retail: Track sales per labor hour to optimize schedules and roles.
• Trades/field service: Measure technician output by job type or location to surface underutilization.
• Tech/SaaS: Monitor revenue per developer or support rep alongside outputs (features delivered, tickets resolved).

Watch overtime closely. Chronic overtime often signals poor scheduling, understaffing, or process bottlenecks—and can drive burnout and turnover, compounding costs over time.

4) Track the Small Stuff—Because It Adds Up Fast

Restaurants watch the little things: napkins, to-go containers, sauce cups. When margins are tight, pennies matter.

In other industries, the equivalents are software subscriptions, contractor fees, admin costs, or travel expenses. These aren’t wasteful by nature—but left unchecked, they quietly erode profit.

Quick win: Run a quarterly “leak finder” report. Scan the general ledger and flag recurring charges under $250. You’ll often uncover expenses that can be trimmed with minimal impact.

5) Industry-Specific Insurance May Better Protect the Business

One restaurant had general liability, property coverage, and workers’ comp—but when an employee filed a harassment claim, they discovered EPLI wasn’t included. The cost of that gap was significant.

The goal isn’t to spend the least—it’s to be protected where it matters most. That requires an insurance provider and agent who understand your industry. In restaurants, a specialist matters; the same is true for other small businesses. For example, many of our building-industry clients use Builders Mutual because they specialize in that niche.

Checklist: Review policy limits and riders annually—especially after hiring changes, growth, or operational shifts.

Restaurants don’t have time for complex dashboards. They focus on a handful of numbers that drive everything else. For any business, when the numbers that matter most are understood and under control, financial health becomes easier to manage.

Need help? Let’s talk. Request a complimentary consultation with one of our CFOs or Business Advisors as the first step to leading your business with confidence.