Where Your Money's Leaking (And How to Stop It Before It Sinks You)
The Busy Owner’s Guide to Keeping More Profit in Your Pocket – Part 1
The 5 Biggest Profit Leaks in F&B Businesses
Hey there—this one's for you - the small business owner is working harder than ever, but is wondering why there’s still no money left at the end of the month.
You run a small café with steady sales and a loyal customer base.
Your doors open before the sun comes up. You cook, manage staff, restock shelves, handle invoices, and stay late to do the books.
Despite all that hustle, you keep only 2% profit at the end of the year.
Meanwhile, you are burnt out, stressed, and constantly worried about bills.
I would bet that if we sat down and looked under the hood, we would find an all-too-common culprit: profit leakage.
It isn’t about needing more customers.
It isn’t about raising prices.
It is about plugging the holes in your leaky bucket.
Why listen to me?
My name is Steven Bonin. I'm a restaurant consultant and a former owner and operator of a profitable food and beverage business.
Today, I help small F&B entrepreneurs build sustainable, profitable operations through intelligent bookkeeping practices and the implementation of proven systems—systems that consistently help owners achieve the double-digit profit margins they deserve.
In this two-part guide, I'll show you the exact leaks that most food and beverage businesses deal with—and how to stop them.
This is Part 1: the awareness stage.
Next week, we’ll dive into Part 2: the fix.
Let’s dig in…
💸 First: What Is Profit Leakage?
Think of it as money you should be keeping but aren’t…usually because of minor, overlooked issues that add up big over time.
And the worst part? These leaks don’t always show up on your P&L.
You feel them before you see them.
The customers are coming in.
You’re selling. You’re busy.
But the bank account?
It’s not moving…
🚨 The 5 Biggest Profit Leaks in F&B Businesses
1. Inventory Waste & Mismanagement
If you’re not actively managing what comes in and what goes out of your business, you’re losing money—period.
Common leaks:
Over-ordering perishables that expire before use
Staff “sampling” without tracking
Not rotating stock (FIFO = First In, First Out)
Guessing order amounts instead of using real data.
A café losing just 3% to shrinkage or spoilage on $500K in annual sales is saying goodbye to $15,000 a year.
2. Labour Inefficiencies
Your team is one of your biggest investments—and one of the easiest ways to lose money if you don’t have proper systems in place.
Leak points:
Overstaffing slow shifts
Understaffing busy ones (lost sales + bad reviews)
Time theft (clocking in early, out late)
Inconsistent training = mistakes, waste, poor service
It’s not about just cutting hours.
It’s about aligning labour with demand.
It may take some time, but the data will show you how to schedule effectively.
This was one of the trickiest challenges I faced personally.
You want to be the go-to service provider in your area—the apex operator, which means having enough people on the team to deliver that level of experience. But great team members come at a high cost.
I found success by cross-training staff to maximize their impact during slower periods, so we were fully equipped to provide the kind of guest experience I envisioned when the rush hit.
It wasn’t easy, but I’ve gained a lot of insight in this area—and I’d love to see how my experience could support your business.
Here’s a link to book a quick chat. 👇
Let’s talk about your day-to-day challenges and how I can help you go from busy and broke to prosperous and profitable.
3. POS Shenanigans and Discount Drama
Your POS should protect your profits, not leak them.
Watch out for:
Unauthorized discounts or comps
Voided transactions that aren’t reviewed
Not charging for add-ons or substitutions
“Sweethearting”—when staff give away items to friends without charging them full price
Cash drawer errors—accidental or not
Just one employee giving away $10/day in freebies?
That’s $3,000+ a year…gone.
4. Supplier Slippage
Your suppliers are partners—but if you’re not double-checking, you could be overpaying without realizing it.
Common misses:
Price increases that slip through without you noticing
Short deliveries you’re still paying full price for
Not negotiating bulk or loyalty discounts
Late fees or missing early payment perks
It’s essential to cross-check every invoice.
And don’t be afraid to renegotiate…they need you as much as you need them!
5. Marketing with No Measurable ROI
“Marketing” isn’t just putting money into Instagram ads or handing out loyalty cards. It needs to work for you… not just because you feel it’s something on a checklist that a business owner needs to do.
Leak examples:
Giving discounts to people who would have paid full price
Loyalty programs with no tracking
Paying high delivery platform commissions without evaluating ROI
Investing in promotions with no clear outcome
If your marketing budget doesn’t have a target or a result?
That’s a cost…not an investment.
🔍 Is This Happening in Your Business?
Here are the red flags I see in leaky F&B businesses all the time:
✅ Your food costs swing wildly from week to week
✅ You can’t match your sales to what’s actually in the bank
✅ Profit margins are tight despite solid sales
✅ You’ve never done an operations audit
✅ There’s no consistent process for inventory or cash handling
✅ You're too busy running the business to review the numbers
If three or more of these sound familiar? You’ve got some leaks to fix.
🧭 What’s Next: The HOW to Stop the leaks. Systems That Stop It
In Part 2 of this guide, we’re going to walk through the exact internal and external control systems that keep your money where it belongs—in your business, not bleeding out.
We’ll cover:
Inventory systems that stop the waste
Financial controls that catch fraud and errors
Labour management tactics that don’t kill morale
SOPs that actually get used
Tech that saves you hours and dollars
And we’ll talk about how to build these without making your already-busy life harder.
👋 Want Help Seeing the Leaks in Your Business?
This is what I do. I’m Steven—and I’ve been exactly where you are
I ran a successful, profitable business for over a decade, consistently achieving double-digit profit margins. Now, I help other owners do the same by bringing proven systems and hands-on experience to plug the revenue leaks in their operations.
If you're ready to take control of your business, book a free 30-minute consultation by clicking the link HERE, or send me an email with any questions, comments or concerns.
Let’s talk about how we can work together to help you become the business owner you’ve always envisioned, rather than feeling like a slave to your own business.
I help small food and beverage business owners:
Spot and stop profit leaks
Build systems that give them freedom, not more work
Finally feel in control of their time, money, and business
👉 Ready to plug the leaks and reclaim your profit?
Book your free consultation now—or reach out by email at steven@thechefplus.com and let’s get started.