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discounts comps webinar · overall restaurant profitability . 13 Discounts & Comps Net Sales Method...

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Accounting for Discounts & Comps Workbook
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Page 1: discounts comps webinar · overall restaurant profitability . 13 Discounts & Comps Net Sales Method Advantages - 1. Prime cost percentages are more .to industry averages Disadvantages

Accounting for

Discounts & Comps

Wor

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Page 2: discounts comps webinar · overall restaurant profitability . 13 Discounts & Comps Net Sales Method Advantages - 1. Prime cost percentages are more .to industry averages Disadvantages

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Page 3: discounts comps webinar · overall restaurant profitability . 13 Discounts & Comps Net Sales Method Advantages - 1. Prime cost percentages are more .to industry averages Disadvantages

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Opening Comments / Introduction Problem Discounting more .

Monthly discounts in excess of of sales fairly common

The of discounting

Accounting & for discounts & comps

Several .

Page 4: discounts comps webinar · overall restaurant profitability . 13 Discounts & Comps Net Sales Method Advantages - 1. Prime cost percentages are more .to industry averages Disadvantages

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Definitions

Discount Sales -

Price reductions of less than .

Examples of Discount Sales 1. Marketing & . 2. Employee . 3. Police / meals

Page 5: discounts comps webinar · overall restaurant profitability . 13 Discounts & Comps Net Sales Method Advantages - 1. Prime cost percentages are more .to industry averages Disadvantages

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Definitions

Complimentary (comp) Sales -

charged or received in return

Examples of Discount Sales 1. Manager . 2. Guest . 3. . and other 100% give-aways

Page 6: discounts comps webinar · overall restaurant profitability . 13 Discounts & Comps Net Sales Method Advantages - 1. Prime cost percentages are more .to industry averages Disadvantages

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Discounts & Comps

Two Main Methods -

1. sales method 2. sales method

Gross Sales Method 1. Discounts & comps .in sales 2. Discounts & comps are recorded in a m . account or . . . 3. Discounts & comps are recorded in one or more . accounts

Page 7: discounts comps webinar · overall restaurant profitability . 13 Discounts & Comps Net Sales Method Advantages - 1. Prime cost percentages are more .to industry averages Disadvantages

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Discounts & Comps

Net Sales Method

1. Discounts & comps are .included in sales 2. Sales are reported of any discounts & comps

Page 8: discounts comps webinar · overall restaurant profitability . 13 Discounts & Comps Net Sales Method Advantages - 1. Prime cost percentages are more .to industry averages Disadvantages

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Discounts & Comps

When discounts & comps are less than 3% of sales - usually a .affect on statements When discounts & comps are greater than 3% of sales - can have a on statements

Example - Discounts for One Period -

Page 9: discounts comps webinar · overall restaurant profitability . 13 Discounts & Comps Net Sales Method Advantages - 1. Prime cost percentages are more .to industry averages Disadvantages

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Discounts & Comps

Gross Sales Method - Discount Account:

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Discounts & Comps

Gross Sales Method - "Expense" Discounts

Page 11: discounts comps webinar · overall restaurant profitability . 13 Discounts & Comps Net Sales Method Advantages - 1. Prime cost percentages are more .to industry averages Disadvantages

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Discounts & Comps

Gross Sales Methods -

Page 12: discounts comps webinar · overall restaurant profitability . 13 Discounts & Comps Net Sales Method Advantages - 1. Prime cost percentages are more .to industry averages Disadvantages

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Discounts & Comps

Net Sales Method -

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Discounts & Comps

Net Sales Method -

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Discounts & Comps

Gross Sales Method

Advantages -

1. Food, beverage and labor cost percentages are based on are

based on .business activity

2. Useful when food, beverage and labor

Disadvantages -

1. Prime cost percentages can be when evaluating overall restaurant profitability

.

Page 15: discounts comps webinar · overall restaurant profitability . 13 Discounts & Comps Net Sales Method Advantages - 1. Prime cost percentages are more .to industry averages Disadvantages

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Discounts & Comps

Net Sales Method

Advantages - 1. Prime cost percentages are more .to

industry averages

Disadvantages - 2. Can .food and beverage cost

percentages

.

Page 16: discounts comps webinar · overall restaurant profitability . 13 Discounts & Comps Net Sales Method Advantages - 1. Prime cost percentages are more .to industry averages Disadvantages

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What To Do?

Total Discounts & Comps LESS than 3% of sales - 1. Don't do .different 2. method should work well

Total Discounts & Comps GREATER than 3% of sales - 1. Be aware that cost percentages can be .by discounts 2. Use the sales method to prepare P&Ls 3. On Prime Cost Report use the sales method evaluate food, beverage and labor costs 4. Be aware that Prime Cost % can be using the Gross Sales Method 5. When comparing your Prime Cost % to industry averages use the sales method

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Ideas to Implement

1. .

2. .

3. .

4. .

5. .


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