Business Accountants: Optimizing Financial Metrics for Restaurants and Cafes in New Zealand


Achieving financial fitness for your hospitality business requires a focused strategy and clear-cut goals, akin to achieving personal fitness goals with a dedicated trainer. As a hospitality business coach, I’ve assisted enterprises in devising “fitness plans” with metrics that are instrumental in their financial success.

Key Financial Metrics for Success in Hospitality:

Establishing and controlling critical financial metrics is pivotal for sustained success in the hospitality industry. Here are some best practice metrics that successful businesses should aim for:

  1. Overheads: Target a range of 25-30% to optimize profitability.
  2. Prime Cost: Aim for a 60% ratio between the cost of goods sold (COGS) and labor expenses.

Sadly, many hospitality businesses in New Zealand fall short of these benchmarks, often exceeding 70% in prime cost. This inefficiency in managing costs significantly impacts the net operating profit, akin to a sinking ship.

Improving Prime Cost:

To enhance prime cost and boost profitability, here’s a strategic approach:

  1. Establish a 60% Prime Cost Goal: Setting a target primes your business for better cost management, enhancing financial performance.

  2. Determine the Ratio: Depending on your establishment’s style, select an appropriate COGS-to-labor ratio (e.g., a cafe might aim for 25/35, a pub for 28/32).

  3. Implement Effective Systems: Utilize comprehensive systems like Loaded to efficiently manage prime cost, leveraging its full potential.

  4. Seek Expert Guidance: Surround yourself with industry experts who can mentor and guide you toward optimal financial practices, ensuring your business stays on track.

Achieving Best Practice Results:

Belief in your ability to achieve these metrics is crucial. By implementing the right systems, fostering the correct culture, and seeking guidance, your hospitality business can attain industry best practice results. This proactive approach will transform your enterprise into a thriving, sailing venture, benefiting both you and your team.

Financial fitness is achievable with the right strategy and commitment to effectively manage key metrics. By leveraging these insights and implementing robust systems, your restaurant or cafe can navigate toward sustained financial success in New Zealand’s competitive hospitality landscape.


Your Outside Team



Need a bit of assistance with your business? Contact an Outside Accounting team member today and learn more about our fixed fees. You won’t regret it.

Aside from business consultation, we are business accountants Wellington who offer accountingbookkeeping, payroll services designed to help you achieve greater financial success.

You can click here to speak to a businessaccounting and bookkeeping firm. We will give you a call to know more about your needs. We will explain to you how we can improve your business. 




Wellington Accountants | 

Business Accountants | 

Construction Accountants 

Property Accountants 

Contractor Accountants 

Hospitality Accountants |

Property Developer Accountants | Accountants Wellington | Wellington Accountant | Restaurant Accountants | Cafe Accountants | Business Consultation | Business Adviser

AddressLevel 2, 182 Vivian Street,
Te Aro, Wellington 6011, New Zealand 

Mail: PO Box 24-457, Wellington 6142

Phone04 889 29 75

New Zealand Accounting, Bookkeeping & Property Business Consultancy Services | Wellington & Lower Hutt Xero Property Accountants Business coach business consultation business adviser

Wellington Accountants: Eliminate Tax Worries: Partner with Top Small Business Accountants

Are you launching a small business? Contemplating whether to hire a business accountant? Perhaps you’re considering bypassing the expense at startup, relying on numerous apps and accounting software. But hold on—engaging a small business accountant is crucial for growth and can alleviate your tax headaches. It’s an investment that pays off! The key is to find the best fit for your needs. Let us guide you on how to make that happen!

Read More »
New Zealand Accounting, Bookkeeping & Property Business Consultancy Services | Wellington & Lower Hutt Xero Property Accountants Business coach business consultation business adviser

Business Accountants: Exploring Business Structures: How to Choose the Right One for Your Venture

Embarking on the journey of entrepreneurship is exhilarating, but establishing the right business structure can be a daunting task. Whether you’re a solo entrepreneur or part of a larger team, understanding the different business structures and making the right choice is crucial for your long-term success. This guide aims to demystify the process and help you navigate the intricate world of business entities.

Read More »