Science of Service Episode 5: Ryan Handel on the bottom line for better restaurant bookkeeping

Listen Here

< Previous episode

Managing a restaurant is already challenging enough, but when you add bookkeeping into the mix, things can quickly get overwhelming. Between tracking vendor payments, balancing inventory costs, and making sense of payroll, the numbers game is often a source of constant frustration for restaurant operators. But what if it didn’t have to be so painful?

This episode of Science of Service takes an inside look at bookkeeping for restaurants, with expert insights from Ryan Handel, CEO and co-founder of FIXE, a bookkeeping solution built specifically for the hospitality industry.

From his beginnings in the restaurant industry to the frustrations that led to the creation of FIXE, Ryan understands firsthand how proper bookkeeping can be a game-changer for restaurant success. Whether you’re a restaurant owner, manager, or part of a restaurant finance team, you'll find valuable takeaways on how to simplify the bookkeeping process and gain better control over your restaurant business's financial health.

Why bookkeeping is crucial for restaurant success

If you’re still relying on a relative, friend, or even yourself to haphazardly manage your restaurant’s books, you’re not alone. It’s common to treat bookkeeping as a secondary task to “handle later”—often using a cash-based approach that only records transactions as money enters or leaves your account. The result? An incomplete and, frankly, misleading picture of your restaurant's actual performance.

But accurate bookkeeping does far more than just keeping the IRS off your back (important as that is). It allows you to:

• Clearly see your cash flow.
• Understand your profit margins.
• Identify potential savings with vendors and operational costs.
• Strategically plan for growth.

Think of it as the backbone of your entire operation. Without strong financial records, you’re essentially running your restaurant blindly, leaving way too much up to chance.

Meet Ryan Handel: A numbers guy with a restaurant owner’s heart

Ryan Handel’s love affair with hospitality began when he was only 16 years old, working at a restaurant during the summer. Through the “ordered chaos” of kitchen sprints and high-pressure shifts, he discovered a passion for the energy and instant gratification that comes from making guests happy. That passion took him to Cornell University’s School of Hotel Administration, where he laid the groundwork for a long career in the restaurant industry.

After working his way up to become the general manager of multiple restaurant locations, Ryan launched his own multi-unit restaurant group. But as his business grew, so did the headaches from managing finances. Between outdated reports, miscategorizations, and a flood of invoices, it became clear that traditional bookkeeping systems weren’t cutting it.

Frustrated with inefficiencies and seeing room for innovation, Ryan started building what would eventually become FIXE, a comprehensive bookkeeping solution for restaurants.

The birth of FIXE: Built by restaurateurs, for restaurateurs

FIXE was officially launched in 2019, born out of Ryan’s own frustrations with bookkeeping. Like many restaurant owners, he found himself overpaying for outdated bookkeeping services, battling with systems that didn’t sync, and dealing with the headaches of incomplete financial insights.

Together with his co-founder Scott, a financial manager, Ryan created a custom system using QuickBooks Online and third-party integrations. The result? A streamlined, efficient solution that not only managed his restaurant’s books but also laid the foundation for what FIXE would offer other hospitality businesses.

The core philosophy of FIXE is simple yet powerful: bookkeeping should empower restaurant owners, not overwhelm them. By combining restaurant-specific expertise with cutting-edge technology, FIXE set out to make bookkeeping easier, more accurate, and far more insightful.

How to find a great restaurant bookkeeping solution

Choosing the right bookkeeping system can transform how you run your restaurant by saving time, reducing costs, and helping you spot opportunities for growth. But what exactly should you look for? According to Ryan, the ideal bookkeeping solution should prioritize these key features:

1. Streamlined vendor payments

Managing vendor payments can be a massive headache for restaurants. Late payments or manual check entries can lead to chaos. The right bookkeeping system should automate these processes, ensuring timely payments and helping you avoid disputes with suppliers.

2. Accurate financial tracking

Accrual accounting, not cash basis accounting, is essential for restaurant success. By recognizing revenue when it’s earned (not just when it hits your account) and recording expenses as they’re incurred, accrual accounting creates a clearer view of your restaurant’s financial health.

3. Data-driven insights

Your numbers should work for you, not against you. Bookkeeping software should translate raw financial data into actionable insights. For example, FIXE helps restaurants visualize their performance via custom reporting dashboards, allowing operators to make smarter decisions.

4. Easy integration with restaurant tools

Whether it’s your POS system, payroll software, or third-party delivery apps, your bookkeeping solution should seamlessly integrate with the tools you’re already using. FIXE helps streamline your “tech stack” so that everything, from tip handling to third-party commission fees, is accounted for without hassle.

5. A focus on transparency

Your bookkeeper or accounting service should feel more like a trusted partner than a gatekeeper. Avoid providers that withhold access to your data or delay providing reports. Transparency is key to building trust and maintaining financial control.

Financial metrics best practices for restaurants

To effectively manage your restaurant's finances, there are a few key metrics every operator should track:

Prime Costs

Your prime cost is the sum of your labor costs and cost of goods sold (COGS). According to Ryan, this number should stay below 60% of your total sales. Whether you're running a high-end steakhouse or a fast-casual taco joint, hitting this benchmark is critical to profitability.

Rent percentage

For healthy margins, target rent costs that are no more than 8% of your total sales. If you’re considering a new location or renegotiating a lease, base your decision on projected revenue, not just flat rental fees.

Cash flow timing

Your financial reports should capture when expenses are incurred versus when money actually changes hands. Many restaurants suffer blind spots here, especially when dealing with third-party delivery fees and delayed vendor payments. A robust bookkeeping partner like FIXE can help you track these nuances.

Negotiation opportunities

Did you know you can negotiate commission rates with third-party delivery platforms like DoorDash or Uber Eats? Or even request quarterly rebates from vendors? Strategic negotiations with these partners can save you thousands every year.

Smarter bookkeeping, better business

Think of bookkeeping as the foundation for all your business decisions. When it’s done right, it equips you with the tools and insights you need to fine-tune operations, improve profitability, and even plan for expansion.

If you’re ready to turn your books into a strategic advantage, FIXE might just be the solution your business needs. Designed for hospitality businesses by people who truly get the industry, FIXE simplifies the complex and gives you the clarity to focus on what you do best.

< Previous episode