Benchmarking in Hospitality: Are You Performing or Just Surviving?
In hospo, it’s easy to operate in a bubble. You’re in the venue day and night, trying to keep costs down, rosters tight, and customers happy — but when margins drop or sales stall, how do you know if it’s just you… or everyone?
That’s where benchmarking comes in. And no, we’re not talking about some academic KPI chart you bury in a Google Drive folder. We’re talking real-world, venue-level comparisons that actually help you make better decisions.
What Is Benchmarking (And Why It Matters)?
Benchmarking means comparing your performance — sales, cost of goods, labour %, average spend — to industry norms or similar venues.
Think:
– Is your GP% low, or is that standard for your style of venue?
– Are you overstaffed… or just running too many low-margin shifts?
– How does your supplier pricing compare to others ordering the same product?
The goal isn’t to obsess over numbers. It’s to contextualise your performance so you know where you’re crushing it — and where you're leaving money on the table.
5 Benchmarks Every Venue Should Know
- 1. Gross Profit % on Beverage
Most strong operators sit between 70–80% GP on drinks. If you’re below 70%, either your pricing’s off or your pour cost is leaking. - 2. Labour Cost as % of Sales
25–35% is sustainable. Above that? You're probably overstaffing, or not generating enough revenue per shift. - 3. Cost per Head / Spend per Customer
$18–24 on casual service, $30–50+ on high-margin cocktails or premium sit-down. - 4. Stock Turnover Rate
If your inventory isn’t turning monthly, you’re tying up cash and risking spoilage. - 5. GP vs Sales Volume Analysis
Are best-sellers actually profitable? This helps avoid flogging low-margin drinks.
The Problem with Most Benchmarking
Most operators either:
– Rely on gut feel
– Use outdated annual industry reports
– Or compare against chains with totally different models
None of that helps when you’re deciding whether to tweak pricing this week, reduce hours, or switch suppliers. You need benchmarking that’s real-time, relevant, and reflective of venues like yours.
How Raise The Bar Helps You Benchmark Smarter
Anonymous venue-level comparisons
See how your GP, labour %, and wastage rates stack up — without sharing sensitive data.Product pricing insights
See if you’re paying more (or less) than the median for common stock items.Menu performance benchmarking
Find out how similar drinks are performing across other venues — so you can make smarter menu calls.Regional trends
Spot shifts in customer spend, peak trading hours, and revenue drops early — before they impact you.