1. Historical Benchmarks HRT 383 Lunch & Dinner Fall 2006

2. 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

3. An Historical Benchmark is…  An historical point of reference What did we do in the past? Measurable  Dollars/Cents  Percentage  Count  Time  Weight  Volume

4. 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

5. 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

6. 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!

7. 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

8. 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

9. 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

10. 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

11. Searching for Benchmarks…  Budgets: Total Sales COGS  Food cost percentage target is 50%  Bar cost percentage target is 40%

12. Searching for Benchmarks…  Lunch Menu Mix –2006: Appetizers 45.8%  Manager’s Special App 26.3% #1-Selling Menu Entrée – RKR Burger 12.4%  Salmon 12%  Turkado 11.5%  Manager’s Special Entrée 27.1% A la carte to banquet = 76.3% / 23.7% Desserts = 46.3%  Manager’s Special Dessert 26.1% Beverages = 76.9%

13. Lunch Projection Weekly Bar Sales 198 4.6% Food sales 4,109 95.4% Total Sales 4,306 Daily Bar Sales 40 4.6% Food sales 822 95.4% Total Sales 862 60 Covers/day @ $14.-

14. Searching for Benchmarks…  Dinner Menu Mix –2006: Appetizers 58.1% #1-Sirloin 33.2% #2-Lamb15.2% #3-Salmon12.3% A la carte to banquet 79.6 / 20.4% Desserts 60.3% Beverages 93% Bottled Wine 262 each WBTG 362 each

15. Dinner Projection Weekly Bar Sales 1,163 23% Food sales 3,893 77% Total Sales 5,055 Daily Bar Sales 388 23% Food sales 1,298 77% Total Sales 1,686 50 Covers/day @ $34.-