Hallagan Consulting

III. Gather Data, Metrics,and Benchmarks


  1. If you aren’t already, begin an informal daily profit & loss statement. By informal, recognize that it won’t be perfect and it won’t be a true net profit line. You can fine tune it each month after you can compare to your actual statements). At the end of the day, all you need is:
    1. Benchmarking:
      1. Station Engineering (for multiple concepts in one business unit)
        1. Daily Dashboard

Mon Tue Wed Thur Fri Sat Sun Total

Daily Sales

Check Avg

- Cost of Goods

- Payroll

Labor hours

- Other purchases

= Daily Profit

Then compile it weekly:

Week 1 Week 2 Week 3 Week 4 Week 5 Total

Weekly Sales (net of tax)

- Cost of Goods

- Labor hours/Payroll

- Other purchases

= Weekly Profit

- Select competitive locations in your area. Go visit them and note: design, marketing, cleanliness, attention to detail, courtesy & eye contact, speed of service, pricing, flow of service, etc.

- Solicit staff to do the same. Recommend reimbursing them for expenses.

- Discuss findings with the team. How were they better? What could we do better?

Do a mini-P&L statement on each station. Example:

Pizza Station

Mon Tue Wed Thur Fri Sat Sun Total

Daily Sales

Check Avg

- Cost of Goods

- Payroll

Labor hours

= Daily Profit

Do this for every station. Roll up into weekly tallies.

Compare daily progress.

- when the above information is automated, it should be available for you every morning on your desktop or laptop, in a global format with drill-down capability.

- a slightly expanded version should be available for all management with multi-unit responsibility, so that all operations can be compared at a glance, with drill-down capability for details. .