Updated on: February 9, 2025
Suppose you’re an operator in the restaurant industry who is serious about making more money. In that case, you and your managers must frequently track and review your biggest and most volatile costs to prevent unnecessary profit loss. A great way to do this is through a daily restaurant activity report, restaurant daily sales report, or restaurant operations report.
Many operators will prepare a weekly P&L report, but you’re halfway through the following week by the time you gather the data and identify the issues. By having a daily report of sales and prime costs when something is out of line, you and your managers can immediately react, cut losses, and resolve the problem. Performing this investigation daily is far easier than you think.
As you know, prime costs are the cost of sales (food and beverages) plus all payroll-related costs. These costs usually account for 60%—65% of total sales in a full-service restaurant and 55%—60% in a quick-service restaurant. Instead of managers chasing this data, a full-featured cloud-based restaurant management system can send sales and cost information directly to unit-level and above-restaurant managers, improving their capability to act now and improve the bottom line.
Using a Restaurant Activity Report to Analyze Inventory and Reduce Food Costs
Knowing what food and beverage costs are daily can reduce food waste by 2% – 6%, and the savings go directly to your bottom line. The first step is counting and tracking what’s being thrown away at each location. Most food waste is due to four factors: overproduction, food expiration, over-portioning, and spoilage. Record why each item is wasted in your restaurant management system so you can identify problem areas and training gaps. A daily restaurant activity report can be incredibly helpful in improving operational efficiency.
The surest way to drive dollars to the bottom line is by identifying the individual menu items with the largest actual vs. theoretical food cost variances. It can be a daunting task in a typical operation with hundreds of items in inventory. Thankfully, a restaurant management system with easy-to-use recipe costing and inventory tracking tools makes performing this investigation daily far easier than you think! The initial setup of recipe costing does take time, but once a system is implemented, your store manager just performs a simple nightly count of 15 ingredients. With inventory management software, you’ll see daily variations in actual vs. theoretical food costs, and any food waste will quickly emerge for action.
Once waste is identified, daily production can be adjusted to more closely match demand. Most restaurant management systems include predictive analytics for inventory management. These analytics tools automatically note which menu items sell better under various conditions, including factoring in the day of the week and sales during similar prior events.
Preventing Overtime Costs and Overstaffing Starts With a Restaurant Activity Report
The combination of changing regulations and a tight labor market guarantees that rising costs and wages will affect every operator in 2021 and beyond. You can no longer wait until the end of the week to find out the bad news on staff overtime. This means you need to find new ways to improve scheduling and productivity. A daily restaurant activity report or restaurant operations report can help ensure that payments to staff are aligned with your budget.
A key metric to track and include in your daily reports is hourly sales vs. labor costs. A good restaurant management system pulls sales and labor costs from your POS in real-time and presents hourly sales vs. labor costs in an easy-to-understand format. Store managers, area managers, and GMs are alerted in real-time to hours of the day when stores are consistently overstaffed or unprofitable rather than being a week behind.
Built-in employee scheduling tools, alert managers if future schedules will lead to overtime. Staff shift-swap requests must also be checked on the fly to ensure they do not push staff into overtime.
Daily Restaurant Operations Checklist
For restaurant owners, implementing a daily operations checklist is a simple but highly effective way to keep your business running smoothly. Following a structured list of tasks ensures consistency, reduces errors, and makes the most of each day. Below are sample restaurant checklists to help restaurant managers and staff improve restaurant operations management:
Opening Tasks
- Inspect the Premises
- Walk through the restaurant to ensure cleanliness and organization.
- Check all entrances, exits, and emergency equipment for functionality.
- Set Up Front-of-House (FOH)
- Clean and organize dining areas, including tables, chairs, and décor.
- Confirm that menus are clean and updated.
- Food Safety Check
- Inspect kitchen equipment and appliances for proper operation.
- Ensure all food preparation areas are sanitized and stocked with the necessary tools.
- Review Daily Goals
- Conduct a pre-shift meeting to discuss sales targets, promotions, and staffing assignments.
- Review reservations and any special events or dietary requirements.
Midday Tasks
- Monitor Inventory
- Check stock levels for key ingredients, beverages, and supplies.
- Log any low-stock items for ordering.
- Oversee Staff Performance
- Ensure employees are following health and safety protocols.
- Address any concerns from staff members or adjustments to the schedule.
- Track Sales and Labor Costs
- Review sales performance vs. labor costs using POS or management software.
- Identify periods of underperformance or overstaffing for adjustments.
- Manage Customer Experience
- Walk the floor to interact with guests and address any complaints.
- Food Safety Practices: Ensure food quality and presentation meet standards.
Closing Checklist
- Clean and Secure the Restaurant
- Conduct a thorough cleaning of FOH and BOH areas.
- Check that all appliances and lights are turned off.
- Finalize Daily Sales Report
- Record total sales, voids, and discounts for the day.
- Review actual vs. theoretical food and labor costs.
- Inspect and Replenish Inventory
- Conduct a quick inventory check to prepare for the next day’s orders.
- Dispose of expired or spoiled food items.
- Plan for Tomorrow
- Update the schedule and prepare for staff assignments.
- Confirm deliveries and reservations for the following day.
Why a Daily Checklist Matters
A daily restaurant operations checklist ensures no detail, from food safety to customer satisfaction, is overlooked. By systematically addressing tasks, managers and staff can stay on top of operations and react proactively to challenges. Incorporate this checklist into your routine and pair it with a robust restaurant management system for seamless execution.
A Restaurant Activity Report is Your Key to Success
Measuring prime costs daily will be well worth the investment when you notice differences on your bottom line. With a modern restaurant management system, managers can easily access the metrics above on their mobile devices. Data can be pulled from multiple POS platforms and updated in real-time via the cloud, so you always have accurate, current analysis to measure and manage your business. Pulling a simple daily restaurant activity report will help you track your restaurant’s overall health and revenue and make it easier to create success.