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HOW BREAK-EVEN ANALYSIS CAN HELP YOU
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INCREASED SALES & HIGHER PROFITS a buil “Leadership is knowing when to lean on others and let them step up and shine.” ding —Michelle Peluso, CEO, Gilt bloc
Star Union Spirits Captures Essence of the Midwest
Star Union Spirits, the artisanal, small-batch distillery in Peru, Ill., is excited to offer hand-crafted spirits that are locally made in the Illinois Valley.
As consumer spending habits shift away from the white spirits to dark fl avored liquids, Star Union Spirits is providing the American answer to the French staple in the form of New American Brandy in addition to its aged and un-aged spirits such as grappa, whiskey and even vodka.
Co-founders Bob Windy, a Peru native, and business partner Jeff Yosowitz opened the company’s doors in the historic, Westclox factory building, which houses a tasting room and the distillery.
When Windy and Yosowitz were looking for places for Star Union Spirits they were drawn to the building’s history and ties to the community.
Sharing the same desire for producing quality and innovation, they began renovation and development of the area’s only distillery.
They use use Midwestern fruits and grains as well as West Coast and South American grapes in their spirits, as well as employing a manually cranked crusher/ de-stemmer and an early 20th century wine press. In addition, Star Union uses clean limestone water from the Illinois Valley, where several breweries long ago fi gured out that the water made for great tasting mash bills.
Tours are available by appointment, while the tasting room sells craft cocktails and bottles.
Consider the Benefi ts of a Break-Even Analysis for Restaurant Owners
Dirk Ahlbeck, CPA National Restaurant Practice Lead, Apple Growth Partners
One method for proper forecasting is to calculate your restaurant’s break-even analysis. A break-even analysis is understanding how much of every dollar in sales above the break-even point should go to the bottom line at various sales levels above break even.
A break-even analysis is a calculation of how much in sales a restaurant needs to cover all of its costs for a certain period of time. Consider it the amount of revenue necessary to cover the total fixed and variable expenses incurred within a specific period of time while operating your restaurant.
The calculation can also be used to properly forecast year-end totals without knowing final sales numbers.
The basic formula is: Breakeven sales = Total Fixed Costs/1-Variable Cost %
Fixed costs are expenses that stay the same regardless of sale volume, such as rent. Variable costs are fluctuating expenses that reflect sales volumes, such as cost for food and beverages and labor. Mixed costs have a fixed and variable cost component, which should be considered fixed costs in the calculation.
For best results, use a four-week or monthly profit and loss statement from three periods from the last 12 months to calculate break-even analysis. It should include your restaurant’s highest and lowest sales period to adequately calculate a middle of the road view. Owners should assume every expense category or cost that is not truly 100% variable in nature is fixed.
For more information, go to applegrowth.com/ restaurants. See Apple Growth Partners’ ad on page 13 of this issue.
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Accurate Scale Company Supports the Food Industry and Beyond
A common sight to see on streets and highways across Chicagoland are the vehicles used by Accurate Scale Company to service clients. Next time you see one of their trucks, take a look at the back and you'll notice the Food Industry News logo with the words “featured in.”
We are very proud that Accurate Scale chooses to feature us on their vehicles. The firm has an excellent track record of supporting food processors and manufacturers across many industries. You can see their ad on page 30.
Grazing Boards Can Keep Brunch Guests Happy
Avocado toast fatigue is real. And so is the calendar squeeze for entertaining options during the winter months. Enter the new trend for entertaining — grazing boards. Versatile enough to cover breakfast, brunch or lunch, these simple yet eye-pleasing spreads please every palate, from sweet to savory. And they can be on the table in just minutes.
Chef Jonathan Davis of La Brea Bakery in Los Angeles says: “Grazing boards offer a new way to entertain that’s simple, elegant and extremely versatile. It limits preparation time and puts the focus on flavors.”
He recommends fresh bread out of the oven, easy proteins like cheese and sliced meats, fruits, veggies, yogurts and dips.
2/1/21 10:42 AM
