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Average check

Meeting customer needs is the primary purpose
of any organization. To achieve that goal, organizations
strive to understand the nature of their
customers first. Average check (also referred to as
‘guest check average’) is one of the common tools
available to the foodservice industry to measure
the amount of money spent per customer. This
information is extremely useful in managing
a restaurant. Average check is used in foodservice
operation for various purposes, including allocating
labor dollars, forecasting unit sales, assessing
employee productivity, measuring the
effectiveness of suggestive selling, effective usage
of floor space in the dining area, calculating cost
percentage per meal, comparative analysis across
operational units, etc. In on-site foodservice
operations, average check is sometimes translated
into ‘average transaction.’
Average check is calculated by dividing total
revenues by total number of customers.
Average check = Total revenues/Total number
of checks (guests)
The denominator remains unchanged but the
numerator can vary with managerial needs. For
example, by using total revenues for a meal
period as the numerator, one may arrive at average
check per meal period. Similarly, one may
calculate average check per day, per week, per
month, per quarter, as well as per unit of operation,
per shift, per wait staff person, or per available
seat. It is one of the most commonly used
and effective comparative analysis tools in the
foodservice industry.
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