90% of Spanish Restaurants Don't Know if They're Profitable, According to Expert

Consultant Francisco Cruz Rivera warns about the lack of management and the need to professionalize the hospitality sector in Spain.

Generic image of a calculator and financial charts on a restaurant table.
IA

Generic image of a calculator and financial charts on a restaurant table.

Economist and hospitality consultant Francisco Cruz Rivera claims that 90% of restaurants in Spain lack a profit and loss statement, preventing them from knowing if they are profitable.

Francisco Cruz Rivera, known as The Food Manager on social media, has indicated that the vast majority of hospitality establishments in Spain operate without clear knowledge of their profitability. According to his estimates, 90% of restaurants lack a profit and loss statement, basing their decisions on available bank liquidity rather than rigorous financial analysis.
Cruz Rivera, an economist and expert in restaurant business profitability, advocates for a "silent revolution" in the sector, calling for greater professionalization, less "romanticism," and better human resource management. He criticizes that many businesses open without a solid business plan, without analyzing financial viability, or even without verifying necessary licenses, which often leads to problems.
The consultant, who has thousands of hospitality followers on platforms like Instagram, highlights that the Spanish hospitality industry, despite its cultural and social importance, suffers from an often "atomized" structure and "professionals who live confined to their premises." He points out that the lack of external vision and exclusive dedication to day-to-day operations prevent many restaurateurs from adapting to economic and legal trends.
Regarding staff shortages, Cruz Rivera points to decades of poor practices in the sector, where the availability of workers was taken for granted. Now, the challenge is to offer "dignified conditions" and an attractive "life plan" for young people, who seek stability and professional development that traditional hospitality has not offered. "We must stop charming the customer and start charming the employee," he states.
The expert also emphasizes the need for bars and restaurants to adjust their prices to reflect the increase in costs for rent, products, energy, and personnel. He argues that competition based solely on price is a mistake, and the sector must focus on "playing the value league," considering the experience and context they offer.
Finally, Cruz Rivera advises those who dream of opening a bar to "dream of making money, not of opening a bar," emphasizing the importance of doing the numbers before launching. He laments the closure of traditional bars but acknowledges that many survive thanks to owning the premises or the owner's own work behind the counter, allowing them to maintain low prices that other businesses cannot afford.