Restaurant Unstoppable – Episode 1178

Profit First Money Management for Restaurants with Kasey Anton
Aired: April 24, 2025

Episode Overview

In this hands-on workshop episode, Eric Cacciatore sits down with Kasey Anton, founder of Spark Business Consulting and author of Profit First for Restaurants, to break down the powerful "Profit First" money management system tailored for restaurants. Kasey and Eric discuss why financial health—putting profit at the forefront of business decisions—is crucial for restaurant success. The episode guides listeners through practical steps, shares real case studies, and provides immediately actionable advice for owners and operators seeking to stop struggling with cash flow and begin building true, sustainable profitability.

Key Discussion Points & Insights

1. Motivation & Mindset (03:28–06:29)

• Love What You Do

  • Kasey’s mantra: “If you love what you do, you never have to work a day in your life.” (04:28)
  • Both Kasey and Eric underline the importance of loving the hospitality industry, which sustains their passion and commitment.

• Defining Your Why

  • “My why...I still believe and love in hospitality and what it does for the world and that we just bring joy.” – Kasey (05:39)
  • Eric expands, noting that empowering restaurant owners uplifts communities.

2. The Profit First Formula & Philosophy (07:32–13:58)

• The “Profit First” Shift

  • Traditional accounting: Sales – Expenses = Profit
  • Profit First: Sales – Profit = Expenses
  • “If we’re going to prioritize profit...our expenses will conform to what the business or the sales can handle. That’s a big mindset shift.” – Kasey (08:17)

• The True Role of Profit

  • Profit isn’t owner’s salary—it’s used to pay debt, invest in assets, and reward owners or staff through profit sharing (09:05–11:46).
  • “Profit and owner’s pay should be and are two very, very different things...Profit is for the business, owner’s pay is for [you].” – Kasey (12:36)

3. How "Profit First" Works—A Cash Flow Management System (15:32–29:32)

• Visualizing Cash Flow

  • Most restaurateurs use one or two bank accounts, but Profit First means using multiple dedicated accounts for Income, Meals Tax, Cost of Goods, Payroll, Profit, Owner’s Pay, Owner’s Tax, and Operating Expenses (OPEX).
  • “We’re going to give every single dollar a job, an intention, when it comes into your business.” – Kasey (15:32)
  • By allocating percentages to these accounts as income comes in, owners create a live, real-time budget and avoid end-of-month surprises.

• Practical Bank Account Setup

  • No/low-fee checking or savings accounts, each with a specific purpose.
  • Most banks are familiar with this structure now.

• The Instant Assessment

  • Use a one-page summary of a year’s Profit & Loss to find your current allocation percentages for COGS, payroll, owner’s pay, OPEX, taxes, and profit.
  • Compare your numbers with industry “Mac Daddy” benchmarks developed by Profit First (25:55).

• Gradual Implementation

  • Start with modest allocations (as little as 1% to profit) and gradually improve as the business gets healthier.

4. Real-World Case Studies

A. Profit First Diagnosing Failure: The Burger Shack (29:58–37:40)

• Background: College-town burger shop in Indiana, deep in debt ($500k+), unable to implement Profit First successfully.
• Problem: “Every time he sold a burger, he was losing money.” – Kasey (31:09)
  • Food cost was over 60%. The owner believed it was much lower.
  • Close analysis revealed over-portioning, untracked waste, and underpriced menu items.
• Outcome: Had to cease operations—Profit First helped surface broken business fundamentals quickly.
• “When you start allocating and you see industry averages...it makes you realize, okay, well, where is it? It forces you to start the investigation.” – Eric (37:42)

B. Profit First Enables Success: California Bistro (40:16–44:53)

• Background: Fine dining bistro near San Francisco; stable but not leveraging profit as a business tool.
• Intervention: Applied Profit First allocations; discovered labor and food cost inefficiencies.
• Actions:
  • Tweaked labor scheduling, re-costed menu (tracked everything, even complimentary items).
  • Began systematic weekly allocations, tracking trends.
• Results:
  • Increased profit set-aside
  • Owner finally achieved predictable pay
  • Built up marketing and reserve budgets, gamified the profit process.
• “She is loaded in terms of profit is set aside. She takes half, she leaves half as a reserve fund...She’s killing it.” – Kasey (44:53)

5. Power of Tracking, Technology, & Scaling Up (48:11–51:25)

• Software Integration:

  • Profit First bank accounts work alongside restaurant management platforms.
  • No functional conflicts—multiple accounts simply reinforce visibility and intention for every dollar.
  • “Instead of having one bank account and everything comes out...we’re just going to give your dollar a job and segregate it into bank accounts with different nicknames.” – Kasey (49:53)

• First Step for Growth:

  • Profit First can be implemented before investing in enterprise restaurant management systems—getting disciplined with cash management is foundational.
  • “Leveraging Profit First to get to that point where you can invest in more robust systems.” – Eric (51:13)

6. Notable Quotes & Memorable Moments

• On Purpose and Joy:

  • “What’s better than creating joy in the world? And I feel like that’s what restaurants do and that’s what I help support them do.” – Kasey (05:39)

• On Clarity and Accountability:

  • “Profit is not a bottom-line net income...it actually should be money in a bank account. It should be money in a bank account that we nickname profit.” – Kasey (15:32)

• On Diagnosing Problems:

  • “Profit First is a great way to bubble up to the surface any fire drill issues...it’s going to bubble up to the service [if something’s off].” – Kasey (36:42)

• On Systems as Tools for Growth:

  • “All that technology is, is a system. And Profit First is a system...it’s the first step to getting...in that direction of going to an enterprise solution.” – Eric (50:30)

Important Timestamps

• Motivation & “Why” Discussion – 03:28–06:29
• Profit First Formula Explained – 07:32–13:58
• Cash Flow Visualization & Account Structure – 15:32–18:52
• Instant Assessment & Benchmarking – 25:55–29:32
• Case Study: Burger Shack Failure – 29:58–37:40
• Case Study: California Bistro Success – 40:16–44:53
• Technology Integration & Scaling – 48:11–51:25
• Call to Action and Next Steps – 53:49–55:23

Recommended Resources & Next Steps

• Kasey's Book: Profit First for Restaurants (available on Amazon, audiobook, etc.)
• Profit First for Restaurants Online Course – A step-by-step, self-paced training for owners and bookkeepers.
• Restaurant Accountant Certification Course – For accountants/bookkeepers seeking specialized expertise.
• Free Tools & Downloads: ProfitFirst4Restaurants.com (16 free tools for implementation)

“Whether it’s, you download the audio or get the book book, Amazon or wherever books are sold is great. There’s a lot of fun stories. It’s a fun read.” – Kasey (53:49)

Who to Watch

• Laura Magoo, Owner of RÊVE Bistro (California):
  Kasey’s “poster child” for Profit First success. “She’s killing it. She recommends it to everyone.” (52:24)

Final Takeaways

• Profit First is a practical, visual, and disciplined approach to profit management—tested and proven specifically for restaurants.
• Start small: Even minimal allocations and separated bank accounts will bring impactful clarity and control.
• Use industry benchmarks as guideposts but adapt the system to your business model—with steady improvement, not overnight change.
• The system exposes operational issues quickly, empowers you to fix them, and, over time, builds a self-rewarding engine for growth.
• Begin by reading the book, considering the online course, or joining Restaurant Unstoppable’s Profit First Power Hour for ongoing guidance.

“This is a system for giving every dollar a job, for turning hard work into sustainable wealth, and for making restaurants unstoppable.” (paraphrased summary)

For resources, links, and the full toolkit: restaurantunstoppable.com/profitfirst