HADM 1360 Lecture 6: HADM 1360 Lecture 6

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16 Aug 2016

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Department

Course

Professor

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HADM 1360

Spring 2015

Ben Lawerance

Cornell University

Note Type: Lecture Note

Lecture Number: Lecture 6

Restaurant as an economic unit and profit generating system.

We can judge whether a restaurant is performing well by understanding P & L and

performance indicators at unit level.

• Number of covers (hour, day, week, month)

• Average check: (Total Sales – Take-out) / # of Covers

• Number of transactions

• Table Turnover

• Yearly sales per server/employee/seat/sq. foot

o should be > $200 per sq.foot

• Sales per labor hour / Covers per labor hour

• Food Cost/Labor Cost

o Prime Costs = Cost of Goods Sold (COGS) + Total Payroll Costs

(Payroll +Employee Benefits) (should be around 65%)

• Food/Beverage sales ratio (%) (Food cost should be 30%)

• RevPASH - Revenue per available seat hour = (total sales – takeout) /

seats*hrs*days

o Does not take into consideration of the cost

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