Checklist
 

The following financial checklist will guide restaurants as
they adjust to operating under new circumstances.

1. Comprehensive financial data

It’s vital for restaurant owners to maintain timely and precise financial data. 
Consider the following:

o    Monthly, even weekly reports will be key in accessing government
      funding, managing cash flow, and pivoting operations.

Ensure financial data is accurate and can be used to drive important decisions

Maintain accurate, timely, and current books

Evaluate how operational changes will impact finances

o    Capacity constraints

o    3, 6, or 12 month forecasts in anticipating future cash flows

o    Deferred payments coming due, such as taxes, rent, royalties, and
      loan payments  

o    Ability to take advantage or extend vendor payment terms

o    Options for covering shortfalls

If you are struggling with anything on this checklist, let us help you reposition your restaurant for the future.
BDO can help manage the rebuilding phase.

How BDO can help

Sample Cash Analysis

The restaurant in this example experienced a loss of sales in April due to COVID-19. The owners pivoted their strategy quickly and were able to increase sales as customers grew tired of cooking
at home. Third party delivery apps are taking a large portion of sales (15%), which arguably could increase to 20%.

Despite a strong increase in sales while taking advantage of government wage subsidies and GST/
HST deferrals, payment requirements will burn cash with deferrals coming due in June and result in
a negative cash position in July. This is despite significant increases in sales each and every month.


Opening Cash

Operating Inflows:

Sales Deposits

Operating Outflows:

Labour Costs

Food and Beverage Purchases

Third party delivery app fees

Rent

Royalty and Ad Fund Payments

Equipment Leases

Repairs and maintenance

Supplies

Advertising

Utilities

Other

Other Items:

GST/HST on Sales

Deferred Amount (GST/HST)

Wage Subsidies Received (CEWS)

Canada Emergency Business Account (CEBA)

Net change in cash

Closing Cash

April

100,000

10,000

33,000 

 30,000 

 15,000 

 12,000 

 8,000 

 2,500 

 2,000 

 3,500 

 2,000 

 3,000 

 4,000 


-13,000 

 13,000 

 15,000 

 40,000 

40,000

50,000

33% 

30% 

15% 

12% 

8% 

3% 

2% 

4% 

2% 

3% 

4%


-13%

13%

15%

40%

 



40%

50%

May

115,000

50,000

 37,950 

 34,500 

 17,250 

 13,800 

 9,200 

 2,500 

 2,000 

 3,500 

 2,000 

 3,000 

 4,000 


-14,950 

 14,950 

 16,000 

 -   


1,300

51,300

33%

30%

15%

12%

8%

2%

2%

3%

2%

3%

3%


-13%

13%

14%

0%


1%

51%

June

130,000

51,300

 42,900 

 39,000 

 19,500 

 15,600 

 10,400 

 2,500 

 2,000 

 3,500 

 2,000 

 3,000 

 4,000 


-16,900 

-27,950 

 17,000 

 -   


-42,250

9,050

33%

30%

15%

12%

8%

2%

2%

3%

2%

2%

3%


-13%

-22%

13%

0%


-33%

9%

July

145,000

9,050

 47,850 

 43,500 

 21,750 

 17,400 

 11,600 

 2,500 

 2,000 

 3,500 

 2,000 

 3,000 

 4,000 



-18,850 

 -   

 -   

 -   


-32,950

-23,900

33%

30%

15%

12%

8%

2%

1%

2%

1%

2%

3%



-13%

0%

0%

0%



-23%

-16%

2. Staffing

How will you adjust staffing levels accordingly as you rebuild? Staffing is traditionally one of the major costs to a franchise restaurant’s operations. Ensure you are optimizing as you rebuild:

Based on changes in traffic patterns, as you rebuild, prepare a plan for
tackling fluctuations

Develop a communication plan for your staff

If you are struggling with anything on this checklist, let us help you reposition your restaurant for the future.
BDO can help manage the rebuilding phase.

How BDO can help

3. Inventory

Restaurants should track and review inventory levels on a frequent basis. Regularly conduct the following checks:

Review inventory levels

Analyze and re-negotiate payment terms and lead-time with suppliers

Re-assess inventory levels and consider paring back menu items to adjust
inventory requirements as you rebuild

If you are struggling with anything on this checklist, let us help you reposition your restaurant for the future.
BDO can help manage the rebuilding phase.

How BDO can help

4. Operations & Technology

While you may have pivoted some of your operations, you need to consider how you will operate going forward: 

Consider whether you will maintain any operational additions, such as
grocery or delivery

Key steps and systems needed to rebuild (supply chains, staff, etc.)
have been established

Leverage technology, if possible

If you are struggling with anything on this checklist, let us help you reposition your restaurant for the future.
BDO can help manage the rebuilding phase.

How BDO can help
Checklist
 

The following financial checklist will guide restaurants as they adjust to operating
under new circumstances.

Comprehensive 
financial data

It’s vital for restaurant owners to maintain timely and precise financial data. Consider the following:

o    Monthly, even weekly reports will be
      key in accessing government funding,              managing cash flow, and pivoting
      operations.

Ensure financial data is accurate and can be used to drive important decisions

Maintain accurate, timely, and current books

Evaluate how operational changes will
impact finances

o    Capacity constraints

o    3, 6, or 12 month forecasts in                        
      anticipating future cash flows

o    Deferred payments coming due,
      such as taxes, rent, royalties, and
      loan payments  

o    Ability to take advantage or extend            
      vendor payment terms

o    Options for covering shortfalls

Sample Cash Analysis

The restaurant in this example experienced a loss of sales in April due to COVID-19. The owners pivoted their strategy quickly and were able to increase sales as customers grew tired of cooking at home. Third party delivery apps are taking a large portion of sales (15%), which arguably could increase to 20%.

Despite a strong increases in sales while taking advantage of government wage subsidies and GST/HST deferrals, payment requirements will burn cash with deferrals coming due in June and result in a negative cash position in July. This is despite significant increases in sales each and every month.

Staffing

How will you adjust staffing levels
accordingly as you rebuild? Staffing is traditionally one of the major costs to a franchise restaurant’s operations. Ensure
you are optimizing as you rebuild:

Based on changes in traffic patterns, as you rebuild, prepare a plan for tackling fluctuations

Develop a communication plan for your staff

Inventory

Restaurants should track and review 
inventory levels on a frequent basis. 
Regularly conduct the following checks:

Review inventory levels

Analyze and re-negotiate payment terms
and lead-time with suppliers

Re-assess inventory levels and consider
paring back menu items to adjust inventory requirements as you rebuild

Project anticipated sales of inventory items

If you are struggling with anything on this checklist, let us help you reposition your restaurant for the future. BDO can help manage the rebuilding phase.

How BDO can help

Operations &
Technology

While you may have pivoted some of your operations, you need to consider how you 
will operate going forward: 

Consider whether you will maintain any operational additions, such as grocery
or delivery

Key steps and systems needed to
rebuild (supply chains, staff, etc.)
have been established

Leverage technology, if possible

Continue relationship with food delivery
service providers (Uber Eats, DoorDash)