How does your restaurant compare? Q3-11 benchmarking update
Third quarter 2011
SS&G compiled operating results of publicly traded restaurant companies to provide you timely benchmarking information. Our past benchmarking surveys of medium-sized private companies indicated, on average, their prime costs were higher than public companies by 1–2 percent. However, high quartile participants (best performing) in our surveys had prime costs 3 percent lower than the average public company.
Overall same-store sales through third quarter of 2011 are up 2.5 percent due to an increase in traffic and menu prices. QSR increased 1.7 percent, led by McDonald’s with an increase of 4.1 percent. The upscale casual segment continues to recover with a 3.6 percent increase. Overall same-store sales for the other segments are all positive, reflecting consumers’ increased willingness to spend again. Soft comparisons and “recession fatigue” are spurring positive comp sales.
Cost of sales increased 0.9 percent as commodity prices continue to increase through the third quarter. Many companies have increased menu prices to balance out this increase and continue to react by lowering costs for labor, cost negotiations, menu engineering, and other items (e.g., number of deliveries).