Table of Contents
Monetary sales concept
Total Sales
Total sales is a term that refers to the total volume of sales expressed in rupees terms. This may be for any given time period, such as a week, a month, or a year. For example, total rupee sales for a restaurant is Rs 10,00,000 for the year ending March 31, 2011.
Total Sales by Category
Examples of total rupee sales by category are total food sales or total beverage sales, referring to the total rupee volume of sales for all items in one category. By extension, we may see such terms as total steak sales or total seafood sales, referring to the total rupee volume of sales for all items in those particular categories.
Total Sales per Server
Total sales per server is the total rupee volume of sale for which a given server has been responsible in a given time period, such as a meal period, a day, or a week. Management sometimes uses these figures to make judgments about the comparative performance of two or more employees. It may be helpful, for example, two identify those servers responsible for the greatest and least rupee sales in a given period.
Total Sales per Seat
Total sales per seat is the total rupee sales for a given time period divided by the number of seats in the restaurant. The normal time period used is one year. This figure is most frequently used by chain operations as a means for comparing sales results of one unit with those of another. In addition, the National Restaurant Association in US determines this average nationally so that the individual operators may compare their results with those of other similar restaurants.
Sales Price
Sales price refers to the amount charged to each customer purchasing one unit of a particular item. The unit may be a single item (e.g., an appetizer or an entrée) or an entire meal, depending on the manner in which a restaurant prices its product. The sum of all the sales prices charged for all items sold in a given time period will be total rupee sales for that time period. Average Sales– Average sales in business is determined by adding individual sales to determine a total and then dividing that total by the number of individual sales. There are two such averages commonly calculated in food and beverage operations: average check and average sales per server.
Average check
Average check is the result of dividing total rupee sales by the number of sales or customers. In the foodservice industry, this is also known as covers.
Average check= Total rupee sales/ Total number of covers
The average sales is used by many food service organizations to compare the sales performance of one employee with that of another, to identify sales trends and to compare the effectiveness of various menus, menu listings or sales promotions.
Average sales per server
Average sales per server is total rupee sales for an individual server divided by the number of customers served by that individual. This, too, is a figure used for comparative purposes, and it is usually considered a better indicator of the sales ability of a particular individual because, unlike total sales per server it eliminates differences caused by variations in the number of persons served. If a restaurant had four servers on duty, and one of them, had 30 customers and total rupee sales of Rs15000 on a particular shift, average sale per server for the steward is calculate as follows:
Average sale for the waiter= Total sales for the waiter/Number of customers served by the steward.
Rs 15000/30 = Rs 500 All of these monetary sales concepts are common in the industry and are likely to be encountered quickly by those seeking careers in food and beverage management.
Nonmonetary sales concept
Total number of dishes sold
Total numbers sold refers to the total number of steaks, shrimp cocktails, or any other menu items sold in a given time period. This figure is useful in several ways. For example, food service managers use total number sold to identify unpopular menu items in order to elimi9nate such items from the menu. In addition, historical records of total numbers of specific items sold are useful for forecasting sales. Such forecasts are helpful in making decisions about purchasing and production. Total number of a specific item solids a figure used to make judgments about quantities in inventory and about sales records, The total numbers of dishes sold also helps the restaurant to forecasts correctly and not purchase too much of raw material.
Additionally, the restaurant management may consider eliminating such dishes from the menu if the numbers sold do not Improve over a period of time.
Covers
Cover is a term used in the industry to describe one diner regardless of the quantity of food he or she consumes. An individual consuming a continental breakfast is counted as one cover. So is another individual in the same coffee shop who orders a full breakfast consisting of juice, eggs, bacon, toast and coffee. These diners are counted as two covers.
Total cover
Total covers refer to the total number of customers served in a given period, an hour, a shift, a day , a week or some other period. Food service managers are usually particularly interested in these figures, which are compared with figures of a similar period in the past so that judgments can be made about business trends.
Average covers
An average number of covers is determined by dividing the total number of covers for a given time period by some other number.That number may be the number of hours in a meal period, The number of days the establishment is open per week, or the number of servers on duty during the time period, among many other possibilities.
The following calculations are some of the more common ones used:
Covers per hour = Total covers / Numbers of hours of operation
Covers per Day = Total covers / Number of days of operation.
Covers per server = Total covers / Number of servers.
The following calculations are some of the more common ones used:
Covers per hour = Total covers / Numbers of hours of operation
Covers per Day = Total covers / Number of days of operation.
Covers per server = Total covers / Number of servers.
The averages so derived can be of considerable help to a manager attempting to make judgments about such common questions as the efficiency of service in the dining room, the effectiveness of a promotional campaign, or the effectiveness of a particular server.
Seat Turnover
Seat turnover, most often called simply turnover or turns, refers to the number of seats occupied during a given period ( or the number of customers served during that period) divided by the number of seats available.
For example, if a restaurant has 75 covers and it serves 150 customers in a given meal period then the seat turn over during that meal period is calculated as follows:
Seat turnover = Number of customers served / Number of covers in the restaurant. = 150/75= 2
In other words, each seat in the restaurant has occupied an average of 2 times during the meal period. Seat turnover may be calculated for any period, but it is most often calculated for a given meal period.