The P&L Isn’t a Spreadsheet. It’s the Story of Your Operation

Most new managers look at a P&L the same way people look at tax forms: confused, anxious, and hoping not to screw it up. They skim the pages, highlight some red numbers, nod during the review, and wait for someone smarter to explain it.

But if you’re running a hotel and don’t understand your P&L, you’re driving blind.

The P&L isn’t just a report. It’s your operation’s daily story. The truest version you’ll get.

It shows what’s working, what’s bleeding, what’s growing, and where time, payroll, and energy are vanishing into a black hole.

That linen overage? It’s not just a number. It’s housekeeping stress. Maybe it’s over-ordering due to bad inventory data. Or early pulls because your night auditor assigns check-ins without confirming room status.

That drop in food cost. Don’t celebrate too soon. It could mean tighter portion control, or it might mean guests are skipping meals due to declining quality or pricing missteps.

Every line tells a story. The question is: are you reading it?

Too many GMs treat the P&L like a post-mortem, not a guide. They use it to defend actions after the damage is done.

The best leaders treat it like a living narrative.

They read it weekly, not just at month-end.
They dig beyond the summary page.
They ask real questions, not just, “Why are you over?”

I’ve seen managers panic over a five percent labor variance without realizing the front desk was covering lobby chaos or training new staff. Context matters.

Numbers only feel intimidating when you don’t know the story behind them.

And here’s what no one tells you. Your line-level managers need to understand it too. Otherwise, you’re carrying out the financial strategy alone. That’s not leadership. That’s a bottleneck.

Want to grow managers? Teach them to read the story.

Sit with them. Ask, “What does this number actually mean?”
Because when a housekeeping supervisor sees that supplies are 14 percent over and understands why, they adjust. They stop repeating “We’ve always done it this way” and start making smarter choices.

When your restaurant manager sees food cost isn’t just a chef issue, but a service pacing issue tied to slow turns, they connect the dots.

At one property, we involved supervisors in weekly P&L reviews. Supply overages dropped by 12 percent in three months.

The P&L shows the impact of decisions you forgot you made.

That cheaper coffee? Guests hated it and skipped breakfast.
That unapproved breakfast attendant? Their absence caused complaint spikes.
That bundled spa package? Half your margin vanished in unused perks.

Reading your P&L like a story helps you catch these connections.
It helps you lead with insight instead of reacting to damage.
It helps your team think like owners, not just task-doers.

So, stop treating the P&L like punishment.
Start using it as your leadership lens.

Because great operators don’t just run numbers.
They read them.
They write better chapters.
And they build a team invested in the story, not just the shifts.

#FinancialLeadership #KnowYourNumbers #PAndLWithPurpose #HotelOperations #LeadershipDevelopment