Profit First for Restaurants with Kasey Anton

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Welcome back to The Daily Mastermind! George Wright III here, bringing you your daily dose of inspiration, motivation, and education. Today, I’m thrilled to introduce you to our guest, Kasey Anton, a bestselling author and business consultant.

Kasey is the owner of Spark Business Consulting and the author of Profit First for Restaurants. With over 300 clients and expertise in business strategy, marketing, and numbers, she’s a powerhouse of knowledge. She’s also a former restaurateur from Boston with extensive experience in the industry. Kasey’s here to share insights on winning strategies for businesses, with a special focus on restaurants.

Kasey, welcome to the podcast.

Thank you so much, George. That was a great introduction. It’s a pleasure to be here.

I could go on and on about your impressive background, but I’ll just say this—I love having people like you on the show. When we talk numbers, people often tune out or get bored, but your energy and approach make the topic engaging.

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Kasey’s Background in the Restaurant Industry

Thanks, George. Let me give you a quick background on myself. I’m originally from Connecticut and attended the University of Rhode Island. Since I was five, I’ve wanted to own and operate restaurants. My parents, however, weren’t too keen on the idea. They thought it was a narrow and grueling career path with a high failure rate.

Despite their concerns, my heart was set on the restaurant business. So, although I majored in business and marketing, as soon as I graduated, I joined the Chart House restaurant—a leading high-end steakhouse at the time.

Oh, I love the Chart House!

Yes! It was an amazing experience. They had locations in Newport, Rhode Island, and Boston. After college, I worked at the Newport location and eventually moved to Boston. There, I fell in love with the local restaurant scene, filled with unique bistros and innovative chefs.

I started as a bartender and server, worked my way up to manager, and eventually became a director of operations. Over time, I achieved my dream of owning two restaurants with partners. One was Bomba in Back Bay, and the other was an Italian restaurant near Fenway Park in Kenmore Square.

It was an incredible experience, but as most restaurateurs will tell you, the highs can be amazing, and the lows can be devastating. As our neighborhoods evolved and my partners and I moved in different directions, we decided to sell the restaurants before they closed.

After selling the restaurants, I found myself at a crossroads. I was a new mom and missed the restaurant community, but I needed to figure out my next move. I realized that I’d become skilled at numbers—keeping those restaurants afloat had honed my financial expertise.

I started a small consulting business, which quickly grew. One of the things I discovered was that most small business owners don’t understand their numbers or recognize their importance. Numbers are more than just a necessity for taxes; they’re a critical tool for running a successful business.

What’s more, this knowledge is universal—it applies across industries. The math doesn’t change, whether you’re in restaurants or construction. I also brought a unique touch to my work by genuinely caring about my clients and explaining concepts in ways they could understand.

Unlike some CPAs who simply hand over tax returns with little interaction, my approach is different. I work closely with clients, discussing their financials, celebrating wins, and helping them solve problems. I think that’s why every single client I have came through referrals.

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Importance of Understanding Numbers in Business

I love that you said that. There’s such a big difference between tax preparation, tax strategy, and truly understanding your numbers. And let’s be honest: whether you like numbers or not, they’re what drive your business.

Absolutely, George. Many business owners avoid numbers, thinking they’re tedious or irrelevant, but they’re the heartbeat of a business. Numbers tell you what’s working and what’s not. They give you the power to make informed decisions, ensuring your business thrives.

And finding someone who cares about your business as much as the numbers is key. Would you say that’s been the secret to your success?

A thousand percent. It’s shocking how many CPAs seem indifferent. I’ve worked with over 200 CPAs for my clients, and many just send over tax returns without engaging with their clients. That’s not enough.

Do you think businesses fail because they’re not passionate about numbers, or is it something deeper?

It’s both. Many business owners come to me because they feel obligated to handle their numbers, not because they see their value. But once they realize that money is a tool—not just a responsibility—they see the bigger picture. Cash flow is the lifeblood of a business, just as blood is to the human body. It needs to circulate for the business to thrive.

Unfortunately, many entrepreneurs take a passive approach, hoping customers will come and sales will happen. But without intentional planning, that’s not a business model; it’s wishful thinking.

So true. Business owners often wonder why they’re not succeeding, but it’s because they’re not being strategic or intentional.

Exactly. That’s where diagnostics come in. You need to evaluate your business, understand where the numbers stand, and create a plan to move forward.

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Diagnostic Review Process

When I onboard a new client, I begin with a diagnostic review of their books, starting with the balance sheet. Many business owners overlook it, but I explain it in relatable terms so they can grasp its importance.

The balance sheet is the spine of your business—it’s the backbone. Everything else stems from it. I examine it from top to bottom, starting with assets. This includes cash, bank accounts, accounts receivable, and fixed assets like vehicles or equipment.

If I see a strong cash position, that’s great. But often, I find businesses with minimal cash reserves or, conversely, millions sitting idle. Then I review liabilities, such as credit card debt. If they’re not paying it off monthly, that becomes priority one because credit card interest is wasted money.

Moving further down, I look at loans. High-interest loans are a red flag. Some loans have repayment rates of 40-50%, which is unsustainable. These tell me the business has likely been in trouble and didn’t know how to solve it.

Finally, I review equity, especially the total equity line. This number tells us the business’s net worth if it shut down today. If it’s positive, the business is on solid footing. If it’s negative, I often find it’s due to excessive debt or insufficient cash flow.

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Analyzing Profit and Loss Statements

After the balance sheet, I move to the profit and loss (P&L) statement. This tells the story of the business. I start at the top with revenue: how much the business made last month, last year, and year-to-date.

Next, I evaluate costs of goods sold (COGS)—what it takes to produce sales. These costs should be within industry norms. For example, I recently reviewed a law firm’s books and found payroll at 85% of revenue. No business can sustain that.

Wow, 85%? That’s not survivable.

Exactly. And yet, businesses operate daily in these conditions, often unaware of the problem. Sometimes they know, but they can’t identify the root cause.

As I go deeper, I look for other inefficiencies. For retail businesses, occupancy costs can be a killer. If they’re paying too much rent for their location, I advise them to renegotiate the lease or move.

Finally, I examine net income. Often, businesses see a positive bottom line but wonder, “Where’s the money?” The answer is always in the numbers—whether it’s tied up in debt, owner draws, or distributions.

This is why I’m such an advocate of Profit First. It forces businesses to allocate their revenue intentionally, starting with profit. Without profit, a business can’t survive, pay debt, or grow.

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The Importance of Diagnostics in Business

I love how you frame diagnostics. Without a clear picture of where you stand, you can’t direct your energy effectively.

Exactly. A diagnostic review helps business owners identify where to focus their attention. Many entrepreneurs get caught up in the weeds, but bringing in experts allows them to prioritize what truly matters.

That’s such an important message, especially for startup CEOs and entrepreneurs. You don’t have to be an expert in everything—you just need the right team to support you.

Absolutely. That’s why my business has thrived. I genuinely care about my clients, and I make numbers approachable. Whether it’s through diagnostic reviews or the Profit First framework, my goal is to help businesses succeed.

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Writing a Book: The Journey and Motivation

Let’s talk about your book. What inspired you to write Profit First for Restaurants?

Honestly, I never planned to write a book. A few years ago, I was working with Mike Michalowicz, the original author of Profit First, as my business coach. He suggested I write a book, but I wasn’t interested.

Fast forward a couple of years—my business was running smoothly without me, which is how every business should operate. I was looking for a new project, but nothing felt right.

Then one day, I had an epiphany. I called Mike and asked if anyone had written a Profit First derivative for restaurants. When he said no, I knew it was my project. Restaurants are my passion, and I wanted to ensure this book was written by someone who truly cared about the industry.

That’s incredible. It sounds like the perfect alignment of your skills and passion.

It really was. Writing the book allowed me to combine my restaurant experience with my financial expertise. My goal is to help restaurateurs not just survive but thrive.

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Challenges and Insights of the Restaurant Business

Restaurants are notoriously tough businesses to run. Why is that?

It’s because restaurants have so many moving parts. Their profit and loss statements are longer than those of most businesses. From food costs to labor to rent, there are endless expenses to manage.

Even when you sell a $50 steak, the profit isn’t as high as you’d think. That $15 steak might involve costs for chefs, dishwashers, and other staff, plus overhead like utilities and rent. You have to sell a lot of steaks to turn a profit.

And yet, people are passionate about starting restaurants.

Exactly. Nobody opens a restaurant to build a job—they do it to build a dream. But dreams can become nightmares without proper financial planning. My hope is that this book shows restaurateurs a better way to achieve their goals.

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Advice for Aspiring Entrepreneurs

You’ve worked with thousands of businesses. What types of businesses do you see thriving right now?

It depends on the region, but service-based businesses tend to have the best profit margins. They don’t have the inventory costs that brick-and-mortar businesses face, which allows for higher profitability.

That makes sense. Are there any general strategies you recommend to all business owners?

Yes—start with your business model. Outline it on paper. Understand your average customer’s payment, your cost to deliver your product or service, and your overhead. What’s left over?

Keep it simple. Many people get so caught up in the excitement of their idea that they forget to analyze whether it’s financially viable.

I love that advice. Keeping things simple and periodically reviewing your business model is such a practical strategy. It helps you see the bigger picture and ensures your efforts are focused in the right direction.

Exactly. Periodically revisiting your business model is crucial because businesses evolve. A model that worked a year ago might not align with your current operations. By simplifying and staying strategic, you can identify inefficiencies, realign your efforts, and ensure your business is headed in the right direction.

That’s such a powerful insight. It’s easy to get stuck in the weeds and lose sight of the bigger picture.

It really is. Sometimes, you’re so focused on daily operations that you don’t realize your ladder is up against the wrong wall. That’s why taking a step back and reassessing your model is so important.

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Resources and Final Thoughts

Let’s talk about resources. Where can listeners find you and access the tools and systems you’ve developed?

I’d recommend starting with our main website: Spark Business Consulting. It’s a hub for resources, including a blog filled with tools like checklists, planners, and guides.

For restaurateurs, we have another site: Profit First for Restaurants. There, you’ll find resources tailored specifically to restaurant owners, including spreadsheets and downloadable tools.

And finally, my personal site, KaseyAnton.com, has information about speaking engagements, podcasts, and more.

That’s fantastic. I’ve checked out your resources, and they’re incredibly valuable. Whether you’re a startup or an established business, there’s something for everyone.

Thank you, George. I’ve designed these tools to help business owners get organized and focused. No matter what stage of business you’re in, having the right resources can make a huge difference.

Any final thoughts you’d like to leave with our audience?

I’d just say this: Whether you’re just starting out or you’ve been in business for years, simplicity and intention are your best friends. Keep things simple, stay intentional with your money, and focus on building a business that works for you—not the other way around.

I love that. It’s been a pleasure having you on the show, Kasey. You’ve provided so much value, and I know our listeners will walk away inspired and ready to take action.

Thank you, George. I had a great time.

That’s it for today’s episode of The Daily Mastermind. Remember, no matter where you are in your journey—whether you’re struggling, thriving, or somewhere in between—it’s never too late to start building the life you want.

If you haven’t already, start digging into your numbers. Resources like Kasey’s can make the process easier and more enjoyable.

Do me a favor: share this episode with someone who could benefit from it. And as always, if you have questions, reach out to us on Facebook or Instagram at The Daily Mastermind.

Thanks for listening, and we’ll talk to you tomorrow. My name is George Wright III, and this has been The Daily Mastermind. Have a great day!

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IMPORTANT LINKS:

Websites

1. Spark Business Consulting: https://www.sparkbusinessconsulting.com
   
   • Hub for resources, blogs, checklists, and tools to help businesses get organized and focused.
2. Profit First for Restaurants: https://www.profitfirst4restaurants.com
   
   • Tailored tools and resources specifically for restaurant owners, including spreadsheets and downloadable guides.
3. Kasey Anton’s Personal Site: https://www.Kaseyanton.com
   
   • Learn more about Kasey, her speaking engagements, podcasts, and her journey.

Social Media Handles

1. LinkedIn: Kasey Anton on LinkedIn
2. Facebook: Spark Business Consulting on Facebook
3. Instagram: @sparkbusinessconsulting
4. Twitter (X): @KaseyAnton

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