Measuring profitability to stay ahead

Controlling costs in the restaurant business is critical. The National Restaurant Association's 2016 Restaurant Operations Report provides crucial data on cost of sales, gross profit, direct operating expenses and other performance measurements to help restaurateurs see how their business compares with those of a similar profile.

The report helps restaurant operators sharpen their financial performance and quickly identify cost categories where data could significantly vary from similar operations. By analyzing operating costs, restaurateurs can detect potential problems, determine how to cut costs, and become more efficient.

Controlling costs in the restaurant business is critical. The National Restaurant Association's just-released 2016 Restaurant Operations Report provides crucial data on cost of sales, gross profit, direct operating expenses and other performance measurements to help restaurateurs see how their business compares with those of a similar profile.

Based on financial and operating data from hundreds of restaurants, the Restaurant Operations Report analyzes restaurant income and expense statements to profile operations data for fullservice restaurants and limited-service restaurants. The categories match up with those presented in The Uniform System of Accounts for Restaurants.

It includes information on restaurant type, location, sales volume, and other measures. The report presents operating results as amounts per restaurant seat and as ratios to total sales, which are the most common bases in the industry.

 

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