Hospitality management is more than cooking and hiring staff. You need to know the bench-marking numbers for your industry.  This will guide you to know if your business is on the money.  Don’t rest on benchmarks.  Aim to have your food business performing better than benchmarks.

According to Silver Chef’s 2016 HISI Report the following benchmarks for restaurants, cafes and takeaways have been identified from researching various sources: (click on below image for full view).

Using the restaurant benchmark for this discussion;  you will notice that as a restaurant increases turnover (sales) the cost of rent decreases. Everything usually scales according to sales.  The benchmark is measured as a ratio (percentage) of sales.

RENT: Usually a restaurant with high sales, will be a larger footprint in square metres because it needs a larger kitchen and larger dining area. This will mean more rental cost, however the cost per square metre will usually be less for larger restaurants. Therefore the ratio of rent to sales will be less.  Basically – the more space you lease, the less you will pay per square metre. However, bigger isn’t always better or profitable.

LABOUR: On the other hand; as a restaurant increases in sales, the cost of labour increases because more staff are usually required to deliver more food and service. This is not always the case – if a restaurant has utilised high tech commercial food equipment to reduce or re-direct staff labour then the labour ratio to sales may be lower.

COST OF SALES: The cost of sales ratio (food or items purchased to on-sell in the business such as food) will usually decrease as the sales increase. This is because the restaurant can buy in bulk or negotiate better deals with suppliers.

Download the attached HISI Report to learn more about hospitality benchmarking and practical insights into four critical areas of your business:

  1. Revenue
  2. Competition
  3. Profit
  4. Expenses

Call Restaurant Bookkeepers now on 1300 043 327 to start a fresh change in your business.

Mise en place!
Chris and team.

Restaurant & Cafe Benchmarking

2016 Restaurant & Cafe Bench-marks in Australia