Historical Benchmarks HRT 383 Lunch & Dinner Fall 2008

What is a benchmark? A point of reference from which 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 – Spring 2008: $15.22 Ave. Check Appetizers 73.9% Manager’s Special App 53%% #1-Selling Menu Entrée – Ravioli 4.9% Halibut 4.8% Fish Tacos 4.3% Manager’s Special Entrée 52.9% A la carte to banquet = 64.3% / 35.7% Desserts = 73.1% Manager’s Special Dessert 51.2% Beverages = 91.4%

Lunch Projection UPDATE Weekly Bar Sales 250 5.7% Food sales 4,125 94.3% Total Sales 4,375 Daily Bar Sales 63 4.6% Food sales 1,031 95.4% Total Sales 1,094 70 Covers/day @ $15.-

Searching for Benchmarks… Dinner Menu Mix – Spring 2008: $30.70 Ave. Check #1-Ribeye 18.0% #2-Scampi 14.4% #3-Pork 14.1% #4-Lamb 11.1% A la carte to banquet 71.7 / 28.3% Beverages 90.3% Bottled Wine 251 each WBTG 502 each

Dinner Projection Revisit Weekly Bar Sales 714 15% Food sales 4,286 85% Total Sales 5,000 Daily Bar Sales 238 15% Food sales 1,429 85% Total Sales 1,667 50 Covers/day @ $35.-