operational calculations

Operational CalculationsFood Beverage Manager

Annual food revenue Food revenue = Spend per head x No. of covers x No.

of days x no. of weeks Annual beverage

Beverage revenue = spend per head x No. covers x No. of days x No. of weeks

Average number of staff The average number of covers (B) divided by one

member of staff required for number of covers for example 40 customers 10 customers per member of staff, 40/10 = 4

OPERATIONAL CALCULATIONS

C A Bird - F&B Manager Tel: 0203 011 5863 Web: http://bit.ly/VW9X07

LABOUR COSTS


Labour costs pay day = No. of staff x Working hours x Rae of pay per hour

Labour costs per year = Total labour costs per day x No. of days No. of weeks Labour costs in relation to total annual revenue

Labour cost percentage = Labour costs x 100 / Revenue

Sales revenue- cost of sales x 100 / sales A measure of operational efficiency (not

profitability). Shows the gross profit, i.e. the sales less costs of

materials (food or beverage) as percentage of sales.

Conversely, can be used to indicate the percentage of materials costs.

Can be used over time for budgeting and comparison purposes and for comparison with industry norms.

GROSS PROFIT


Net profit % = sales revenue – total costs x 100 / sales Measures the average amount spent per bill

transaction. Usually calculated for specific service period in

order to compare spending power of customers and average customers group size over time.

Useful when interpreting & comparing sales figures.

NET PROFIT %


Spend per head = Sales / No. of customers Measures the average amount sent per person

served. Usually calculated for a specific service period in

order to compare spending power of individual customers.

Can be broken down further to indicate spend on food and beverages.

Useful when interpreting and comparing sales figures overtime.

SPEND PER HEAD


Material costs % = Sales x 100 / Cost of materials. Identifies the cost of materials (either food or

beverages) as a percentage of the sales revenue. Usually calculated separately for food &

beverages & also then down to individual or groups of menu or beverage items.

Useful for comparison over different service periods & for comparison against industry norms.

MATERIAL COSTS %


Labour costs % = Sales x 100 / Cost of labour Identifies the cost of labour as a percentage of

the sales revenue. Useful for comparison over different periods &

for comparison against industry norms.

LABOUR COSTS


Productivity index = Sales / Cost of labour Alternative method for showing labour costs

in relation to sales. Low index would be where there is a high labour

cost in relation to sales Can be used as budget measures and also for

comparison with industry norms.

PRODUCTIVITY INDEX

9C A Bird - F&B Manager Tel: 0203 011 5863 Web: http://bit.ly/VW9X07 Page

Revenue per employee = Total sales / NO. of staff employed Gives sales revenue per member of staff. Can also be calculated for full-time equivalent.

Used as a measure of efficiency. Usually calculated for specific service periods &

comparison made overtime.

REVENUE PER EMPLOYEE


Sales per seat available = Sales / No. of seats available Indicates the amount of sales that are

generated per seat available Usually calculated for given service periods &

compared over time. Can also be calculated on the sales per seat used. Comparison between these two figures can

indicate efficiency of operation.

SALES PER SEAT AVAILABLE


Seat turnover = NO. seats used / No. of seats available Indicate the occupancy efficiency of the

seating in a food service area. Usually calculated for specific service periods &

compared over time.

SEAT TURNOVER


Sales per meter = Sales / Total area of operation in square metres Can also be calculated per square foot.

Commonly also used in retail operations. Can be useful in bar areas or for takeaway

operations where earnings per seat cannot be calculated.

SALES PER SQUARE METRE


operational calculations

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