Space needed for the dining area depends on the type of restaurant, number of guests and seat turnover. Break-even point is one of the first numbers you should calculate. Productivity in each restaurant has its own ecosystem and … The kitchen sizes of the nation’s estimated 900,000 restaurant locations are as varied as the food, décor and service style, spanning notch-in-the-alley lunch counters to opulent and expansive fine-dining establishments. For a restaurant, the most effective way is to look at the average price and the average cost of the items on your menu. 7 Restaurant Performance Metrics and How to Calculate Them 1. The number can then be used to forecast how long it’ll take to earn that money back. How to Calculate Break-Even Point for Your Restaurant Restaurant cooks and chefs come in all shapes and sizes and a wide variety of experiences. This number lets you pinpoint how much you must bring in in sales to earn back an investment. Break-Even Point. What Is the National Average Size of a Restaurant Kitchen?. The meaning of average per cover in restaurants is the total number of sales divided by the cover … To do this, you will need to first separate fixed costs from variable costs. Some methods of calculating break-even point can be quite subjective. A restaurant has total sales of $2,000,000 comprised of $1,400,000 of food sales and $600,000 of beverage sales. … Once you have the break-even point calculated, you will know what you need to do to make a profit. In the planning stages of a restaurant, from menu design to lease or purchase values, average check is the single most important calculation an operator can focus on. Many restaurant operators do not follow their average check closely enough to determine when they are losing valuable income from existing guests. It is perfectly acceptable to report the average food revenue per cover, the average beverage per cover and the average revenue per cover. Our hope with this article is to help define some standard restaurant accounting metrics, shine a light on why they matter to you, and help you figure out how to start tracking them today. More upscale dining concepts will require a chef with ample experience, while more basic concepts, like a food truck, is a good place for someone still learning the ropes of restaurant cooking. How to Calculate Restaurant Productivity Managing restaurant productivity is a challenging endeavor. If you focus only on the numbers, only on the bottom line, then you may win the battle but lose the war. In fact, I prefer the components to be reported along with the total revenue. We can see the method more clearly with an example. A moderate-price restaurant with 100 seats would need 12 to 14 feet per chair, while a fast food restaurant would only need 9 to 11 feet per chair. This question doesn't specifically define which meaning of average cover you are looking for.