Monthly P&L statement meaning in hospitality

A Monthly P&L is a financial document that shows the revenue, costs and expenses of a hospitality business over a 1 month period. It's a snapshot of the business, showing income from room sales, food and beverage and other services and all the expenses like labour, utilities and supplies. The bottom line is whether the business made a profit or loss for that month.

This is a key tool for hospitality managers and owners. It helps you track the financial health of your business, identify trends and make informed decisions. By comparing monthly P&L's you can see seasonal patterns, measure the impact of marketing campaigns or test new menu items or services. It's also good for budgeting, forecasting and setting financial goals for your business.

Let's say you're the manager of a busy city centre restaurant. It's July and you've just received your Monthly P&L. You see that your revenue has increased from June but your profit margin has decreased. Upon closer inspection you see that your food costs have gone up. You investigate further and find that the price of several key ingredients has gone up. Now you can take action - maybe adjust your menu prices, find new suppliers or create new dishes that use more cost-effective ingredients. Without the Monthly P&L you might not have seen this until it was a bigger problem for your business.