As Brisan Hospitality Consulting specialises in the hospitality industry, food & beverage operators often ask us ‘How does my business compare to other similar type operations?’ This is a great question, that can help hospitality businesses to adjust, plan and even aim higher.
Beyond financial planning & review, benchmarking is great for also measuring employee costs (inc. rostering and workforce planning), inventory and stock management, and rent / lease budgeting, in addition to a range of other areas. It is always great to get a guide of what you are achieving based on the industry standards.
The ATO offers small business benchmarks for each industry (https://www.ato.gov.au/Business/Small-business-benchmarks/In-detail/Benchmarks-by-industry)
This provides general data based on tax returns and activity statements lodged with the ATO. It provides a basic guide of what various costs should be, against different levels of turnover.
Restaurant & Catering Association is also a resource point, as they provide an informative report based on a member survey of cafes, restaurants, and catering businesses. Their Report contains not only benchmarking on profit, costs, etc., it is also a valuable tool to find out the main hospitality business concerns and general standing. Click on this link to see the latest report provided by Restaurant & Catering (https://rca.asn.au/sites/default/files/uploaded-content/website-content/2020_industry_benchmarking_report_digital_version.pdf).
Also consider looking at Australian Hotels Association (AHA), as they provide a similar report to their members relating to hotels, entertainment venues and accommodation (https://aha.org.au/wp-content/uploads/2020/02/PWC-AHA-Report-July-2018-.pdf).
While each individual business is different, we look at industry standards as a measure. If we assess that the business is performing well below industry benchmarks we can then delve into the actual business to take into account variables which may affect the measure against industry standards. If you are not sure whether you are achieving the industry standards, speak to us. Call us on (08) 8235 1594 or send us a message.