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14.05.2018

What is the average check? Let’s calculate and analyze

Do you want to know how much a relative customer spends in your establishment? We will show you how to calculate the average check in the restaurant or café and what affects its growth and decline.

 What is the average check composed of?

Every guest of your establishment places order and pays some money for it. The payment method isn’t important – cash, debit card, bonus account or by installment. The sales receipts confirm the payments. The amount of all checks is equal to the revenue for some period of time.

The average check is normally considered to be the indicator of successful sales in the establishment. The bigger the average check, the better because it means larger total sales.

To calculate the average check, there are four indicators to be considered

  • CP — the calculation period. You can choose a shift, a week or a month depending on the calculation targets.
  • NC — the number of checks (purchases) by period. It isn’t equal to the number of guests because one check may be paid by several visitors, for example, by a group.
  • ATS — the amount of total sales, or the revenue for the calculation period.

So, the concrete measure of success, the average check (AC), is calculated by dividing the amount of total sales by the number of checks and thus, we get:

ATS / NC = AC

In general, it takes longer than 30 minutes to do the math manually.  Many mobile applications include special features to make such calculation much more quickly. They are connected to the cloud-based cash register, and as such, they keep sales records and build reports by user request.

You surely cannot expect the software to run the business instead of you. It just provides important metrics and quantitative analysis for you to speed up your daily routine. If you wish to pull fresh users on board and maximize the revenue, you will also need complex data analysis.

Qualified analysis of the average check

Analysis of quality indicators is based on the cause-and-effect relationships. You need to find out why the indicator of your business success has changed and what has caused these changes.

If you find the cause of undesirable changes, you will be able to respond appropriately to it. Therefore, the number of sales in your establishment as well as its profitability will rise again.

The qualified analysis of the average check relies on two groups of factors.

Quantitative factors

These indicators answer the question «How many?». They are countable — revenue by period, number of checks, guests and so on.

The more orders are placed by visitors groups, the bigger average check you will have.

Mobile and web applications for cafés and restaurants can assist you considerably by providing values based on quantitative factors impacting the average check. You don’t need to do any math, all values are available the Administration panel. All you have to do is to specify the period, the indicator and you build reports.

Qualitative factors

These are events, circumstances, factors related to the daily routine of the establishment. They are uncountable, yet detectable and explainable.

The qualitative factors answer the questions «Has it impacted…», «Why…», «When…», «Who…»  and so on. It is supposed that straight answers will be always provided to these kinds of questions. Thus, you will be able to organize them as a unique logic chain.

These indicators answer the question «How many?». They are countable — revenue by period, number of checks, guests and so on.

The more orders are placed by visitors groups, the bigger average check you will have.

Mobile and web applications for cafés and restaurants can assist you considerably by providing values based on quantitative factors impacting the average check. You don’t need to do any math, all values are available the Administration panel. All you have to do is to specify the period, the indicator and you build reports.

You wish to know, for instance, if new dishes are selling well and if it has the influence on the average check for the month. Here are the eventual questions to do analysis:

«What new dishes have we started selling for the past month?» —name, menu section.

«When new dishes have been added to the menu?» — date and time.

Next we combine qualitative and quantitative indicators:

«How many new dishes have been sold since – i.e. from the moment they were added to the menu till the final date of the overall period?»

«What was the sales amount by new dishes? ». It is preferable to determine not only a figure, but also the revenue percentage by menu novelties in total sales revenue.

«How has the sales revenue changed since new dishes were introduced – has it increased or decreased?«. This indicator varies depending on the novelties price, cooking value, their ability to complete the menu or replaces outdated items. It is important that the menu will be updateable with new items. The less frequent it is, the better chance your visitors will see novelties.

From theses causes of changes, it’s possible to draw conclusions and plans.

Additionally, if you need a brief report about the average check, use the application on the smartphone. It will give you a leg up on your competition since you will be able to make smart decisions.

 

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