Historical Benchmarks

							Historical Benchmarks
           HRT 383
        Lunch & Dinner
          Winter 09
What is a benchmark?
   From Merriam-Webster Online:



     A point of reference from which
      measurements may be made


                         http://www.m-w.com/cgi-bin/dictionary
                                           Accessed 10/08/04
An Historical Benchmark is…
   An historical point of reference
       What did we do in the past?
       Measurable
           Dollars/Cents
           Percentage
           Count
           Time
           Weight
           Volume
Cautions:
   Compare “Apples to Apples”
   Watch for differences in:
       Volume
       Days or Day-Part Variations
           Number of operation periods
           Hours of operation
       Seasonality
       “Like Items”
       Menu prices
       A La Carte vs. Banquets
Searching for Benchmarks…
   Net Sales Analysis:
       Daily or weekly sales in dollars
           Total sales
           Food sales
           Beer sales
           Wine sales
           Bar sales
       Daily or weekly guest count
       Daily or weekly check average
Searching for Benchmarks…
   Weekly Menu Mix/Sales History Analysis:
       Item sales (by count or percentage)
           Individual items (count or percent)
           Category sales (count or percentage)


       A la carte counts vs. banquet counts

       Unless most other measures are equal (or close to
        equal), use percentages for benchmarks!
Searching for Benchmarks…
   Bar Cost:
       Daily or weekly percentages
           Beer costs percentage
           Wine cost percentage
           Total bar percentage


       Usually, weekly information is more accurate
        than daily information
Searching for Benchmarks…
   Credits to Cost of Goods Sold:
       Comps vs. Total Sales
       Goodwill comps (marketing) vs. QSA
       Waste report
           Accuracy is critical
           Use for information rather than benchmarks
       Family meal issues
Searching for Benchmarks…
   Weekly Summary:
       QTD information
           Counts
           Check average
           Sales
       COGS
           Quarterly food cost percentage
           Weekly and quarterly bar cost percentage
       Other expense categories by percentage
Searching for Benchmarks…
   QTD Menu Mix/Sales History Analysis:
       Item sales (by count or percentage)
           Individual items (count or percent)
           Category sales (count or percentage)


       A la carte counts vs. banquet counts

       Usually QTD information is used for benchmark
        percentages
Searching for Benchmarks…
   Budgets:
       Total Sales
       COGS
           Food cost percentage target is 33%
           Food Cost Marketing & Training is 17%
           Bar cost percentage target is 40%
Searching for Benchmarks…
   Lunch Menu Mix – Fall 2008: $14.82 Ave. Check
     Appetizers 60.29%
           Manager’s Special App 41.18%%
       #1-Selling Menu Entrée – Burger 7.14%
           Turkado 6.51%
           Mahi Mahi 6.44%
           Manager’s Special Entrée 42.53%
       A la carte to banquet = 61.23% / 38.77%
       Desserts = 60.50%
           Manager’s Special Dessert 44.19%
       Beverages = 49.83%
Lunch Projection UPDATE
      Weekly                     Daily

Bar Sales     250 5.6%   Bar Sales      63 5.6%
Food sales 4,250 94.4%   Food sales 1,062 94.4%
Total Sales 4,500        Total Sales 1,125

                         75 Covers/day @ $15.-
    Searching for Benchmarks…
   Dinner Menu Mix – Fall 2008:
   $38.09 Ave. Check
       #1-Pork                        16.9%
       #2-Lamb                        14.6%
       #3-Halibut                     14.5%
       #4-Steak                       13.4%
       A la carte to banquet   62.8 / 37.2%
       Beverages                      94.2%
       Bottled Wine                  132 each
       WBTG                          266 each
Dinner Projection Revisit
     Weekly                    Daily

Bar Sales 1,000 15%    Bar Sales     333 15%
Food sales 6,000 85%   Food sales 2,000 85%
Total Sales 7,000      Total Sales 2,333

                       65 Covers/day @ $35.-