Looking Beyond the $50 Breakfast

In my last two blogs, we explored why your bank balance alone doesn't tell the whole story about your business.

Recently, I came across a discussion that reminded me that bank balances aren't the only numbers that can be misleading. Sometimes, the numbers we see tell only part of the story. Someone had paid about $50 for breakfast for two and couldn't understand why. Based on their calculations, they estimated the restaurant had only about $5 invested in eggs, bacon, toast, and coffee. They also pointed out that restaurants have traditionally marked up food several times its cost and wondered why breakfast wasn't closer to $20.

It wasn't an unreasonable question. In fact, many of us have probably wondered something similar. But as I read through the discussion, another question came to mind. Assuming the food really did cost about $5, where did the other $45 go?

The more I considered that question, the more I realized this wasn't really about breakfast. It was about understanding what it takes to operate a business. When we sit down in a restaurant, we naturally notice the food. What we don't always notice is everything that made that breakfast possible.

Before the first customer ever walked through the door that morning, someone had already unlocked the restaurant. The coffee was brewing. The grill was heating. The refrigerators and freezers had been running all night to keep food fresh and safe. Employees had arrived early to prepare ingredients, stock supplies, and make sure everything was ready for the morning rush. The dining room was clean. The tables were set.  The restrooms were stocked. The lights were on, and the air conditioning kept the restaurant comfortable. None of those things happen by accident, and none of them are free.

Behind every plate of eggs and bacon are people, equipment, utilities, rent, insurance, maintenance, cleaning, licensing, taxes, and dozens of other expenses that customers rarely think about because they shouldn't have to. A well-run business takes care of those details so customers can simply enjoy their meal. And then there's one more cost that's easy to overlook.

The owner. The person who invested their savings, signed the lease, purchased the equipment, hired the employees, accepted the financial risk, and is responsible for making sure the doors open every morning. When an employee calls in sick, the owner finds a solution. When equipment breaks, the owner pays for the repair. When business is slow, the bills still must be paid. By the time that breakfast reaches the table, countless decisions, investments, and responsibilities have already gone into making it possible.

That's when it occurred to me that this conversation wasn't really about breakfast at all. It was about something much bigger.

Whether it's a restaurant, salon, plumbing company, landscaper, retailer, or bookkeeping service, customers naturally see the finished product or service. Business owners, on the other hand, see everything it takes to make that product or service possible.

When you pay for services at your favorite salon, the cost is for more than shampoo, hair color, and a haircut. You're also helping support the rent, utilities, insurance, professional products, licensing, continuing education, scheduling software, and the countless behind-the-scenes expenses required to provide the quality experience you have come to expect.

When you call a plumber, you're paying for more than the new faucet or repaired pipe. You're helping cover the cost of a service vehicle, specialized tools, inventory, insurance, fuel, licensing, and years of training and experience.

The same is true for landscapers, electricians, mechanics, retailers, accountants, bookkeepers, and countless other small businesses.

Customers purchase a product or service. Business owners operate an entire business to make that possible. Perhaps that's the real lesson from the $50 breakfast. The discussion wasn't really about whether breakfast should have cost $20 or $50. It was about perspective. As customers, it's natural to compare a price to what we can see—a plate of food, a haircut, a plumbing repair, or a monthly financial report. As business owners, we know that every product and every service is supported by countless hours of planning, preparation, investment, and responsibility that most people never see.

Neither perspective is wrong. Customers want to feel they're receiving good value for their hard-earned money. Business owners want to provide that value while earning enough to keep their doors open, support their employees, care for their families, and continue serving their communities.

When both sides understand a little more about the other's perspective, something positive happens. Customers gain a greater appreciation for the businesses they rely on every day. Business owners are reminded that communicating the value they provide is just as important as delivering it.

The next time you enjoy breakfast at a local restaurant—or hire any small business—perhaps you'll think a little differently about the price. Instead of asking, "What did the eggs cost?" you might find yourself asking, "What did it take to make this possible?"

That's a question with an answer far richer than a price tag.

Every number tells a story—but rarely the whole story.

That's why I believe Great Bookkeeping Begins with Understanding Your Business.