1. Historical Benchmarks
HRT 383
Lunch & Dinner
Fall 2007

2. What is a benchmark? A point of reference from which
From Merriam-Webster Online:
A point of reference from which
measurements may be made
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 – Spring 2007: $13.71 Ave. Check
Appetizers 65.7%
Manager’s Special App 34.9%
#1-Selling Menu Entrée – Salmon 10.3%
Turkado 7.6%
Rib Eye Steak 6.6%
Manager’s Special Entrée 39.8%
A la carte to banquet = 66.8% / 33.2%
Desserts = 61.7%
Manager’s Special Dessert 44.3%
Beverages = 77.1%

13. Lunch Projection UPDATE
Weekly
Bar Sales %
Food sales 5, %
Total Sales 5,390
Daily
Bar Sales %
Food sales 1, %
Total Sales 1,078
77 $14.-

14. Searching for Benchmarks…
Dinner Menu Mix – Spring 2007: $36.96 Ave. Check
Appetizers %
#1-Steak %
#2-Mahi %
#3-Chicken %
A la carte to banquet / 42.2%
Desserts %
Beverages %
Bottled Wine each
WBTG each

15. Dinner Projection Revisit
Weekly
Bar Sales 1, %
Food sales 5, %
Total Sales 7,215
Daily
Bar Sales %
Food sales 1, %
Total Sales 2,405
65 $37.-