What is one of the core principles for managing a healthy P/L?

Running food costs slightly higher than theoretical is a core principle for managing a healthy profit and loss (P/L) statement because it reflects a balance between maintaining quality and ensuring profitability. Theoretical food costs are calculated based on ideal scenarios, including standard portion sizes and inventory management. However, actual food costs can fluctuate due to various factors such as waste, theft, and variations in portion control.

By accepting slightly higher food costs than the theoretical, a business acknowledges that while striving for perfection is ideal, the practical realities of running a restaurant often involve variances. This flexibility allows for maintaining quality and customer satisfaction without disproportionately sacrificing profits. It's essential to monitor these costs closely, but a small margin above theoretical can be acceptable if it helps enhance the overall dining experience and customer retention.

In contrast, keeping costs low regardless of sales can lead to compromised quality or service, which might hurt customer loyalty. Maintaining a conservative staff level can lead to inadequate service during busy periods, and emphasizing beverage sales alone without regard to the overall menu could result in missed opportunities for a more balanced revenue stream.