“The lack of willingness to talk about finances in this industry is holding us back.” — Irene Li, chef-owner of Boston’s Mei Mei
that I would want to watch would be chef-owners plunging a toilet, cleaning an overflowing grease trap, balancing a balance sheet, and running payroll as fast as they could — a decathlon of all the administrative bullshit,” says Irene Li, the chef and owner of Mei Mei, a Chinese-American restaurant in Boston. “And obviously, people would be bored to death by that show, but that’s what it really is.
Now, it’s no longer enough for Li to share the nitty-gritty financial info with her team. She wants the public to understand it, too. Businesses are required by law to pull a P&L annually. Most restaurants look at theirs quarterly. At Mei Mei, the entire staff digs in every four weeks. Catering margins are better due to the fact that the restaurant is able to plan around the exact amount of food and labor that a given job needs — something they, of course, aren’t able to do in the restaurant. Another reason Li believes they’re staying close to their target, all things considered, is the fact that the catering menu is fairly light on meat.
What most people probably don’t realize is that restaurants often rent a lot of their equipment. For Mei Mei, that includes a dishwasher and an ice machine — so yes, it can cost over $6,000 a year just to clean some dishes and to have a reliable source for ice cubes. Next year, this number will go down a bit as Mei Mei purchased its very own ice-making machine.
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