Pouring Profits, Not Just Pints: Cash Flow Tips for Restaurants and Microbreweries

Why Cash Flow is So Critical in the Hospitality Industry

Hospitality businesses often face unique financial challenges:
– High overhead costs: Think rent, equipment, licenses, staffing, and maintenance.
– Fluctuating sales: Seasonality, holidays, weather, and trends can all make revenue unpredictable.
– Perishable inventory: You’re constantly investing in inventory that depreciates or spoils quickly.
– Tight margins: Profitability often hovers between 3-10%, meaning even small cash missteps can have big consequences.

Unlike other industries, you can’t just bill a client and wait 30 days to get paid. Most restaurant and brewery income is daily or weekly, while expenses like payroll, vendor invoices, and taxes are due like clockwork. That’s why cash flow isn’t just an accounting concern—it’s an operational necessity.

Common Cash Flow Mistakes Restaurants and Breweries Make

Here are five of the most frequent cash flow issues we see when working with restaurants and microbreweries:

1. Over-ordering Inventory
Having a walk-in full of premium steaks or IPA ingredients might feel comforting, but it ties up your cash in goods that may spoil, get wasted, or not sell.

2. Ignoring Daily Sales Data
Too many business owners only look at profit and loss monthly or quarterly. Without weekly (or daily) reporting, you can miss warning signs like declining check averages or excessive comped items.

3. Not Separating Fixed and Variable Costs
Understanding which costs are constant and which vary with volume helps you adjust spending when sales drop.

4. Delaying Payroll Tax Payments
This is one of the most dangerous practices for any business and can lead to audits or legal action.

5. Lack of Forecasting
Without cash flow forecasting, you can’t anticipate dips in revenue, plan capital expenses, or avoid emergencies.

7 Ways to Improve Cash Flow in Your Restaurant or Brewery

1. Implement Weekly Cash Flow Reports
   Track inflows/outflows on a weekly basis using platforms like QuickBooks Online.

    

   2. Control Labor Costs Through Scheduling
   Use sales data to schedule efficiently and reduce unnecessary overtime.

   3. Monitor Inventory Closely
   Adopt systems to track usage and minimize waste.

   4. Renegotiate Vendor Terms
   Extending payment terms gives more breathing room.

   5. Set Aside a Tax Reserve
   Treat taxes like a non-negotiable weekly expense.

   6. Use Promotions Strategically
   Design promotions to increase check size or boost slow periods.

   7. Plan for Seasonality
   Build reserves during busy periods to weather the slow ones.

A Quick Word on Beer-Specific Bookkeeping

Microbreweries have a unique layer of complexity. You’re not just selling beer—you’re manufacturing it. That means tracking raw materials by batch, allocating labor, and dealing with losses that affect COGS. Use tools like QuickBooks Online with inventory add-ons to help.

At JL Bookkeeping Design, we help breweries understand their cost per pint, optimize batch cost accounting, and stay TTB audit-ready.

Why You Should Work With a Bookkeeper Who Understands Restaurants and Breweries

Hospitality accounting requires specialized knowledge—tip rules, POS integration, food vs. beverage margins, prepaid gift cards, and more.

At JL Bookkeeping Design, we offer custom reporting, vendor reconciliations, and strategic insight to help restaurants and breweries stay cash-flow positive and audit-ready.

Final Pour: Take Control of Your Cash Flow

Whether you’re serving up brunch or brewing the next local favorite IPA, financial clarity gives you the power to:
– Stay ahead of bills
– Make confident hiring decisions
– Plan for upgrades and expansion
– Sleep better at night

Want to make sure your restaurant or brewery is financially on tap?
Schedule a free consultation with JL Bookkeeping Design today.