OPERATIONS Your Pizzeria's Report Card A Study of Profit & Loss Statements (P&Ls) and Balance Sheet By Dan Collier Photo Josh Keown M y mentor Roger Duncan, founder of Rusty's Pizza in California, shared this wisdom with me. " Sales are made in the restaurant. Profits are made in the office. " Let us embark on a journey to pizzeria profitability. The cast of characters is this: Your pizzeria (Student) You (Parent) Your accountant (Teacher) The P&L (Student's report card) The Balance Sheet (Parent's report card) Step into my office. When we first open our pizzeria, the purpose of accounting is to pay our bills. Quickly we understand the second purpose of accounting; to pay our taxes. Only after accomplishing paying our bills and paying our taxes do we move into the third purpose of accounting; to know if we are 3 4 / P I Z Z AT O D AY. C O M / J A N UA R Y 2 0 2 1 034_PIZ_0121_OPprofitloss.indd 34 12/15/20 2:40 PMhttp://www.PIZZATODAY.COM