Industry News | November 19, 2013

NRA Helps Operators Optimize Financial Performance

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The National Restaurant Association (NRA) released a new edition of the Restaurant Operations Report, a comprehensive resource that helps restaurant operators review and strengthen financial performance. Produced in collaboration with Deloitte & Touche LLP, the report allows restaurateurs to compare their operations to similar ones to better detect potential problems, manage costs, and become more efficient.

"Understanding how a restaurant is performing and allocating its resources in comparison with establishments of a similar business profile could help operators position their establishments for growth and optimized profitability,” says Hudson Riehle, senior vice president of the research and knowledge group for the NRA.

The Restaurant Operations Report presents operating results as amounts per seat and as ratios to total sales, which are the most common bases in the industry. It provides data on cost of sales, gross profit, direct operating expenses, employees, pre-tax income, and other measurements to help sharpen financial performance and quickly identify cost categories where data could substantially vary from similar operations.

Based on financial data from more than 630 restaurants, the Restaurant Operations Report analyzes restaurant income and expense statements to generate operations data for four restaurant profiles: three in full service (per-person checks of under $15, $15 to $24.99, and $25 and over), and one in limited service. In each profile, the data breaks down by sales volume, location type, menu theme, and ownership. The cost categories match up with those presented in the NRA’s the Uniform System of Accounts for Restaurants.

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