When you go from a catering operation to a restaurant you increase your fixed costs and labor. Hopefully you make some of it up in volume since you are sellling every day instead of weekends and some daily gigs. Labor is the big monster and you need to get that under control right away. Have people there only when you are busy, send people home during the down times and bring them back during the busy hours. Split their shifts, part time labor will help greatly. Are you sure your prices are high enough? What is the competition doing and how do your prices compare? Everything is a moving target so keep on top of things daily.