Benchmarking the essential tool to optimise retail returns

With self-operation of retail services a large part of the foodservice marketplace benchmarking is an essential tool to ensure that both the operations, customer experience and financial returns are optimal. By comparing performance against an industry or peer group trend based on real data, on a like-for-like basis areas of underperformance can be identified and a strategy can be developed to raise performance in the identified areas

So, how can you ensure that your own retail services operation is performing to industry benchmarks? How can you be sure that you are receiving the maximum return on your investment in foodservice and hospitality services?

 

Benchmarking

We benchmark the performance of a client’s retail services looking to understand the financial performance of a client’s retail operations versus key industry data, cost ratios and years of accumulated insight from across the sector. Typical areas of focus will include;

  • Unit sales – positive based on comparable operations?
  • Costs – Aligned to the quality of your services?
  • Sundry costs – under control and in line with comparable operations?
  • Labour costs – comparable and competitive to retain and attract the best staff?
  • Contractor income – aligned to agreed levels and standards of service being delivered on-site and or across the contract? Fully transparent?

However, the financial performance and sales of any retail solution are wholly dependent on the quality of the product and services.  We expect to review the following, assessing performance with the data from leading practitioners available in the market and using audit evidence to support our findings:

  • Product range & quality – does it fit the market and client’s needs?
  • Product quality & provenance – is the trend for using local food being reflected?
  • Effective sales activity – is volume, spend and frequency being driven effectively?
  • Service & Culture – is the team trained and the culture in place to deliver consistently high-quality service?
  • Corporate Social Responsibility – is there a clear strategy in place to make a positive social impact and create social value.
  • Wellness – Is the offer aligned to and supporting healthy choices and outcomes