Revenue per customer in a restaurant
Now I am asked a lot of time how do you know what will work
and will not work as a restaurant. How do you know what will be a place that
makes money and will not. The true answer to that is I do not, and I do not
think that anyone really does. It comes
down to the welcome, warmth, interest, confidence, personality, pace
of service, training, knowledge, skills, value for money, perception of the customer and their willingness of
customer to recommend.
If you get all of that right then you will be half way there
but there is one other toll that you can use and that is the plan how much you
need to make. To maintain a level of service you need so many staff, a good waiting
staff should be able to serve a twenty to thirty cover section in a restaurant
all depending on the table break down and when they are coming in, same with a
chef or bar person. So by knowing this
you can calculate what you need to do to make your establishment work.
Say that you are looking at a restaurant that has fixed
yearly costs of £104,000 a year and a wage bill of £61,000 a year, your cost a
year are £165,000. Your restaurant is a 60 cover restaurant and you open for 11
until 2 and 6 until 10 for dinner. The average dinning session is 1 hour per customer.
Now you need to know what you your average prices, for a starter £3 a main £7
and a sweet £4 and two drinks £4 giving you an average spend of £18 per cover. So with tree hour lunch service and 4v hours’
dinner service you could turn round one cover seven times in one day given your
opening time. So you could make £7,560 a
day.
1 cover X 7 sitting 60
= 420 covers a day
420 @£18 per person= £126 X 60= £7,560 a day.
Now if you know you’re running costs are £165,000 a year so
divided that by 365 days a year and divide by 60 and you have £7.53. So you have
the petechial to make £118.47 on every seat.
£165,000 cost / 365days
a year / 60cover = £7.53
But you will not get that,
unless you are very lucky and if you did you would probably find that your
fixed wag bill would be a lot more. But
that does not matter that is your target that is the maximum you could achieve.
Let’s be realistic and say that you want to achieve 50% of this.
1 cover X 3.5 sitting
60 = 210 covers a day
210 covers @£18 per
person= £63 X 60= £3,780 a day .
This would still be a good return, but the actual truth is
what the restaurant is making a year and that is a very different picture. The restaurant only made £170,000 last year. So
now if you take £18 as the average spend then that means divide that by the revenue
and then the number of cover you get a very different picture.
£170,000 revenue / £18
average menu price/ 356 days in the year = 25.8 covers a day
25.8 covers @£18 per
person= £464.40 a day
So you actually are not doing as well as you expected in fact
you are in fact if you look at the average covers to the full potential you are
only trading at 6%
25.8 / 420 = 0.06
Evan if you look at the more realistic 210 covers a day you
are still way behind what you should be trading at 12%.
25.8 / 210 = 0.12
So know you know where you are and the next thing is to sort
out what you can do. Well that is look at what is really being spent per head,
it might not be £18, and it might be more. Look at adjusting you prices
or how you sell things , break your menu down to drive a better gross profit on
some items and help support others but you have to increase customer threw put
to make it more profitable . But at least you know what to work out and where
you can go.
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