Business benchmarks are the typical measures of a restaurant’s performance.
If you run a restaurant, you’ll want to get this right…
When you benchmark your restaurant, you evaluate various factors, including sales, profit and expenses against Australian industry standards.
Average benchmark scores then help you identify areas in which your business is performing well and aspects which require improvement.
Benchmarking gives you a complete profile of your company’s strengths and weaknesses.
At a Gild, here is an example of a type of report that we can prepare on your behalf:
[ Monthly Performance Report Example – CLICK HERE ]
In the competitive restaurant industry, this information can be a super-valuable business tool.
Operations benchmarks reveal how successfully you attract new diners, keep customers returning and avoid problems such as illness from spoiled food and poor service.
(don’t worry, we know that very rarely happens in your venue … )
Organising a company to complete a “Mystery Shopper” is a great way to find out how your restaurant operates when you are not there.
This measures how well a restaurant manages its food stock. This metric can be measured over different time periods, such as daily, weekly, or monthly.
Cost of Goods Sold (or COGS as it is widely known in accounting) simply helps you measure your gross profit margin (GP).
In Australian restaurants, the average COGS should be 30% or less. For instance, if you sell burgers for $25, it should cost you $7.50 or less in raw materials (bun, pattie, lettuce, tomato, sauce etc) to produce that burger.
Completing timely stocktakes assists with ensuring your COGS and GP% are accurate.
You can gauge the average revenue per order, per customer, or per table. This can help you compare against other stores in your chain or competitors.
It can also assist you with identifying which of your staff are generating the highest sales per order, and use their best-practice sales tips to assist other staff with generating higher sales.
This measures how long the average employee stays with your restaurant so that you can identify turnover and help reduce recruiting and training costs.
Service levels can also be improved through lower staff turnover, along with increases in Average Revenue Per Customer.
In general, Australian restaurants should fit within the following standard cost metrics for key products served.
How do you stack up?
Benchmarking may not be an easy thing for your restaurant.
We know you are busy, and we understand all the late nights. Who has time to assess the standard benchmarking data for your type of restaurant?!
Reach out to your Gild Client Manager to discuss ways that we can assist you when it comes to understanding the various benchmarking data that is relevant to your venue.