ch.2

• Comparable statistics


  • The statistics collected include number of businesses, turnover and employment but do not provide insight into customer spend or profitability or even which businesses are included in which sector
• Benchmarking


  A systematic way of judging how your business performs against a reference point, exploring where and why your operation does not work as well as it could and implementing ways to close the gap
• Performance benchmarking


  • Relies on the identification of key indicators of performance
  • Include both physical and monetary measures
  • Sometimes called statistical or metric benchmarking
• Process benchmarking


  • Looks at the operational process and sub-process
  • How things are done, not on the outcome achieved
  • Sometimes called best practice benchmarking
• Approaches to classification


  • Classifying by name
  • Classifying by food type
  • Classifying by business format
  • Classifying by market
  • Classifying by venue / occasion
  • Classifying by service style / level
  • Classifying by average spend
• Classifying by business format

  • Independent / owner operated
  • Chain
  • Franchise
  • Managed house
  • Retail agreement
  • Franchise agreement
  • Tenancy agreement
  • Lease agreement
  • Management contract
• Classifying by market


  • Direct - Restaurants, accommodation and pubs, bars and nightclubs all come under the direct market segment, where the customer has free choice of which operation to frequent and has a direct relationship with the organization that provides the service
  • Indirect - The other sectors – events, business and industry, education, travel, health and welfare, the services and prisons – have an indirect relationship with their customers because some or most of their choice has already been restricted by a third party
• Classifying by service style / level

  • Fine dining
  • Casual dining
  • Fine casual
  • Fast casual
  • Quick service restaurants (QSR) / fast food
  • Coffee shops
  • Take-away / mobile