New Research Helps Restaurateurs Optimize Operational Performance

New research that could help restaurant operators review and improve the financial performance of their establishment is now available in the 2010 edition of the Restaurant Industry Operations Report. The new report by the National Restaurant Association and Deloitte allows restaurateurs to compare their operations to similar ones to better manage budgets, food costs, utilities, labor costs and other items. 

"The restaurant industry is on track to post sales of $580 billion this year, and the outlook for the industry is becoming increasingly positive," said Hudson Riehle, senior vice president of the research and knowledge group for the National Restaurant Association. "Understanding how a restaurant is performing and allocating its budget in comparison with establishments of a similar business profile could help operators capitalize on the improving economic conditions and aid profitability over time." 

“Deloitte is pleased to continue its long-standing relationship with the National Restaurant Association,” said Steve Steinhauser, director, Restaurant Industry Practice, Deloitte & Touche LLP. “Over the past two decades, we’ve seen a tremendous evolution of the industry, with restaurateurs facing multiple challenges and increasing competition. The Restaurant Industry Operations Report can help restaurateurs develop insights about food, labor, and operating costs, among others factors, to benefit their business.” 

The Restaurant Industry Operations Report provides information on typical restaurant operations, including costs, such as food/beverage and labor, which each account for about one-third of total sales. The pretax profit margin of a restaurant typically ranges between 2 and 6 percent. 

The report includes detailed data on operating costs and line items as amounts per seat, or ratios to total sales, by restaurant type, region, sales volume, menu theme and other parameters. It contains data on sales, gross profits, operating expenses in various categories, seat turnover, employees per seat, pre-tax income and more. The survey data is presented as medians and upper and lower quartiles unless otherwise noted. 

The report includes specific financial information on limited service restaurants, and fullservice restaurants by average per-person check (under $15, $15 to $24.99, and $25 and over). 

The information in the Restaurant Industry Operations Report is not intended to be used as a universal standard for individual restaurants, but as a management tool to help compare a restaurant’s performance with that of similar establishments. 

To order the 2010 edition of the Restaurant Industry Operations Report, visit the Association’s online store at www.restaurant.org/store, or call (800) 482-9122. The report is available to National Restaurant Association members for $60, and to non-members for $125. 

As used in this document, “Deloitte” means Deloitte LLP and its subsidiaries. Please seewww.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.