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Executive Summary
Sales & Revenue
Total Sales
Based on reported data of similar businesses nationwide, your reported sales of $600,000 represent $200 per square foot, a $1.71 deviation from industry average.
Comments: Industry median is $198.71, so Turnip’s Blood Café is representative of all restaurants within the reported sales and square footage categories.
Food Sales
Based on reported data of similar businesses nationwide, your reported food sales of $480,000 represent $6000 per seat, a $180 deviation from industry average.
Comments: Industry median is $6180 per seat, therefore your food sales are within 3% of industry averages
Beverage Sales
Based on reported data of similar businesses nationwide, your reported beverage sales of $120,000 represent $3000 per seat, a $1239 deviation from industry average.
Comments: Industry median is $1761 per seat, so Turnip’s Blood Café is in the upper quartile based on your sales and number of seats
Cost of Sales
Food Cost
Based on reported data of similar businesses nationwide, your reported food cost of sales of 37% represents a 2.4% deviation from industry average.
Comments: Median food cost is 34.6%, therefore food cost is slightly higher than the national median, equivalent to $11,520.
Beverage Cost
Based on reported data of similar businesses nationwide, your reported beverage cost of sales of 33% represent a 1.2% deviation from industry average.
Comments: Median beverage cost is 31.8%, therefore beverage cost is slightly higher than the national median, equivalent to $1440.
Operating Expenses
Salaries & Wages
Based on reported data of similar businesses nationwide, your reported salaries & wages (including benefits & payroll taxes) expense of 28% represents a 6.6% deviation from industry average.
Comments: Median salaries & wages expense is 34.6%, so your labor costs are in the lower quartile of national averages; Turnip’s Blood Café may want to verify server efficiency to be sure proper staffing and section size are in place.
Marketing
Based on reported data of similar businesses nationwide, your reported marketing expense of 2% represents a 0.1% deviation from industry average.
Comments: Median marketing expense is 2.1%, therefore in line with national averages of similar segments.
Utilities
Based on reported data of similar businesses nationwide, your reported utilities expense of 12% represents a 7.9% deviation from industry average.
Comments: The national median of cost of utilities expense is 4.1% of total sales, therefore you are in the upper quartile of this category. This expense category should be looked into for improvement, perhaps from an efficiency standpoint of energy usage, equipment maintenance or coding error. Your local utilities providers should perform an immediate energy audit on the facility to assist you in this matter.
Occupancy Costs (including rent/mortgage, taxes & insurance)
Based on reported data of similar businesses nationwide, your reported occupancy cost of 5% represents a 0.1% deviation from industry average.
Comments: At the national median of 5.1% your occupancy costs are in line with national averages.
General & Administrative
Based on reported data of similar businesses nationwide, your reported G&A expense of 4% represents a 0.3% deviation from industry average.
Comments: At a national median of 3.7%, this figure appears to be slightly higher than like facilities in the same sales segment. This could be a coding situation within your internal books, and therefore not reason to cause alarm.
Direct Operating Expenses
(including, but not limited to: laundry & linen, paper, tableware, utensils, contract cleaning, vehicles, licenses & permits, and interest expense)
Operating Expenses
Based on reported data of similar businesses nationwide, your reported operating expenses of 6% represents a 0.1% deviation from the industry median of 5.9%.
Comments: The NRA’s Restaurant Industry Operations Report does not break out line item costs within this category for comparison analysis, yet your operating expense cost is within the national median.
The Bottom Line
Income (Loss) Before Income Taxes
Based on reported data of similar businesses nationwide, your reported income (loss) ratio of 3% represents a 0.2% deviation from industry average.
Comments: 2.8% of total sales is the national median for Income (Loss) before Income Taxes, therefore profitability could be enhanced with better management of the utilities expense item.
Summary
Overall analysis suggests that Turnip’s Blood Cafe is performing in the median quartile of profitability compared to same segment operations based on annual sales, expenses as percentages of sales, square footage, and numbers of seats.
Both food and beverage cost of sales numbers are slightly high, and with a focused management of various resources, these expense categories could be brought further into line. The MHRA has both CD-ROM and module specific competency guides that may offer educational opportunities to further reduce these expense factors.
Access your local energy and gas companies to assist you in identifying energy and utilities waste, and also verify your preventive maintenance policy on all equipment.
Potential Areas of Improvement & Resources for Continued Improvement
Food Cost Menu pricing
Portion controls
Inventory Management
Production/Prep Charts
Waste Tracking
POS Integration
Labor Cost Manpower Planning
Revenue tracking
Historical data
Employee Benefits/Meals
Work Comp
Direct Operating Cost Uniforms
Linen
Paper
Utensils
License/Fees
Cleaning Supplies
Music/Entertainment Television
Live Music
Canned music
Licensing Fees
Utilities Water
Gas
Electric
Waste/Grease Removal
G&A Office Supplies
Credit Card fees
Data Processing
Accounting
Bank charges
Security
Repair/Maintenance Mechanical
FF&E
Painting/Decoration
Occupancy Costs Rent/Mortgage
Taxes
Insurance
Debt Service Equipment Financing/Leasing
Other Business Loans
Competency Guides of the
Customer Service
Managerial Accounting
Inventory & Purchasing
Controlling Foodservice Costs
Nutrition
Food Production
Human Resources Management & Supervision
Hospitality & Restaurant Management
Restaurant Marketing
Menu Marketing & Management
Restaurant Success Series CD
Over 4 and a half hours of multi-media training on financial management, food cost control and creating a more profitable menu. A training tool every independent operator and staff will profit from for years to come. Improve your systems, procedures and profitability NOW!
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