The Hidden Financial Killers in Your Restaurant: Fork CPA's Raffi Yousefian Reveals What Most Operators Miss
Guest: Raffi Yousefian, CEO of The Fork CPAs
Episode: 86 Reason Ep14: Restaurant Financial Framework with Raffi Yousefian (The Fork CPAs) - Win vs Loss
Episode Duration: 1hr 10m 56s
Published: Jan 05, 2026
Topics: Restaurant Financial Management, Balance Sheet Analysis, Restaurant Accounting Systems, Prime Cost Optimization, Store-Level Profitability, Restaurant Expansion Strategy, Cost Management Solutions, Financial Data Accuracy, Restaurant Automation Tools, Multi-Unit Growth Planning
Episode Summary
Running a restaurant with razor-thin margins is hard enough. But what if the financial data you're using to make critical decisions is actually worse than having no data at all?
In this episode of the 86 Reason podcast, Raffi Yousefian, CEO of The Fork CPA, shares the hard truths about restaurant finances that most operators overlook, and the surprisingly simple framework that separates struggling concepts from wildly profitable ones.
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Why This Episode Matters
Since 2022, Raffi has specialized exclusively in restaurant accounting, working with operators across the country to turn financial chaos into clarity. His firm doesn't just crunch numbers, they uncover the "dead bodies" hiding on balance sheets and help restaurateurs build systems for sustainable growth.
If you've ever wondered why your sales are strong but your bank account isn't, this episode is for you.
The Four Financial Game-Changers Every Restaurant Operator Needs
1. Your Balance Sheet Is Screaming at You (Are You Listening?)
Most restaurant operators obsess over their P&L and ignore their balance sheet. Big mistake.
Raffi's take is stark: "The ultimate red flag is the balance sheet. All the dead bodies are on the balance sheet, my friend."
Without a weekly, reconciled balance sheet, your P&L and prime cost reports are essentially fiction. Making decisions based on inaccurate data is "worse than not even having the data in the first place," according to Raffi.
Demand a reconciled balance sheet every single week. If your accountant can't provide this, it's time to have a serious conversation. Watch for red flags like a current ratio below 1:1, it signals you might not have enough liquid assets to cover short-term obligations.
2. The Expansion Trap: Why "Nailing It" Comes Before Scaling It
The graveyard of failed restaurant groups is filled with concepts that expanded before they were ready.
Raffi sees it constantly: operators get excited about growth and open location two, three, or four before location one is truly dialed in. The result? Multiplying problems instead of multiplying profits.
The winning formula: Focus on super simple menus with at least 15% store-level profitability before you even think about expansion. The magic metrics that prove you're ready:
50-55% prime cost (COGS + labor)
15%+ store-level profitability
Consistent, repeatable customer demand
Bootstrap your second location only after your first has demonstrated a working business model for at least 6-12 months. Fast-casual concepts with strong value propositions tend to excel here because they attract repeat customers and maintain operational simplicity.
3. High Sales, Low Profits? You Have a Cost Management Problem
"We're doing great revenue!" is often code for "We have no idea where our money is going."
Many operators assume that if they can just drive more traffic, profitability will follow. But Raffi consistently finds that high-revenue restaurants with persistent losses have a cost management issue, not a marketing problem.
Even a 1-2% improvement in margins for a multi-million dollar operation can dramatically change your bottom line—and it shows up in your cash balance almost immediately, unlike marketing campaigns that take months to yield results.
Analyze your prime cost trends monthly (or even weekly for higher-volume operations). Work with your accounting team to identify exactly where costs are creeping up, whether it's food waste, labor scheduling, vendor pricing, or portion control. Small, consistent improvements compound quickly.
4. Automation Isn't Optional Anymore—It's Your Competitive Advantage
Manual accounting processes eat time, introduce errors, and keep you reactive instead of strategic.
Raffi's firm leverages automation extensively, not to replace human expertise but to free accountants to focus on what actually matters: oversight, system maintenance, and strategic analysis.
Your accountant should be spending time analyzing trends and identifying opportunities, not manually entering invoice data. The tedious work of ensuring all invoices are uploaded and properly reconciled is crucial, but it should be systematized.
Ask your accounting partner what automation tools they use. If the answer is "Excel and QuickBooks," you're probably not getting the level of insight and efficiency you need in 2025.
The Unbiased Third Party You Didn't Know You Needed
Here's something Raffi emphasized that resonated deeply: The Fork CPA positions itself as an objective, third-party consultant—not just a number-cruncher.
This matters because restaurant operators are often too close to their business to see financial red flags objectively. A specialized accounting firm can spot patterns, identify trends, and raise concerns without the emotional attachment or operational bias that comes with being in the day-to-day trenches.
They're not there to tell you how to run your kitchen or manage your staff. They're there to give you accurate financial intelligence so you can make better decisions, faster.
The Bottom Line: Passion Needs Numbers
Raffi put it perfectly: "If you don't actually love restaurants and going out to eat and the whole experience, you're probably going to want to get out pretty quickly."
The restaurant industry demands passion. But passion without financial discipline is a recipe for burnout and bankruptcy.
The good news? With the right systems, the right data, and the right expertise in your corner, restaurants can be incredibly profitable. You just need to know where to look, and what to fix.
About Raffi Yousefian
Raffi Yousefian is the CEO and founder of Fork CPA, a NY/DC-based accounting firm launched in 2016. After serving various industries in his early years, Raffi made the strategic pivot in 2022 to focus exclusively on restaurant accounting, recognizing both the unique challenges and tremendous value proposition the hospitality industry offers. Today, Fork CPA provides accounting, tax preparation, and financial analysis specifically designed for restaurateurs, helping operators access the critical KPIs and tax strategies they need to grow profitably and stay compliant.
Connect with Raffi:
Company: The Fork CPAs
LinkedIn: in/raffiyousefian/
Ready to Get Your Finances in Order?
Don't let hidden financial problems sabotage your restaurant's potential. Whether you're a single-unit operator trying to dial in profitability or a growing group preparing for expansion, the principles Raffi shares in this episode can transform how you run your business.
Listen to the full episode with Raffi Yousefian on the 86 Reason podcast for even more actionable insights, real-world examples, and financial strategies you can implement immediately.
Want to streamline your back-office operations? Visit Over Easy Office to discover how seamless financial systems can free you up to focus on what you do best, creating incredible hospitality experiences.