How Does Your Restaurant Stack Up to Your Competition? Q2 Benchmarking Update
Each quarter, we compile the operating results of publicly traded restaurant companies to provide timely benchmarking information. Curious about how restaurants fared in the second quarter of 2015? Read on.
The industry as a whole continued to see solid growth in 2015 as restaurants are investing in innovation to fulfill customer demand and quickly adapting to rapidly changing market forces. Leading the charge were the pizza and fast casual segments, experiencing an improvement in same-store sales of 7.3 percent and 6 percent, respectively. Notably, increased focus on improving the digital customer experience helped Domino’s continue to lead the pizza segment – the chain reported a 14.2 percent increase in same-store sales, nearly double the segment’s average.
Higher sales and effective labor management were instrumental in driving the industry’s growth in the second quarter. Another positive sign for restaurants is that the cost of sales dropped by .3 percent through Q2, which could be attributed to a decline in commodity costs. Cheaper cheese, wheat and pork benefitted the pizza segment in particular.
One area of caution for restaurants to note is labor costs, as businesses continue to monitor the impact of the Affordable Care Act as well as emerging wage increase regulations. Furthermore, increased sales can cause a hike in labor costs in the form of overtime and bonuses.
If you're wondering how to benchmark a private company against the report, we've found that, on average, when compared to public companies, medium-sized private companies indicated their prime costs were one to two percent higher. However, high-quartile - or best performing - private company participants had prime costs three percent lower than the average public company.
For more insights, download and read the full report here
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