Convenience Store News

JUL 2015

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78 Convenience Store News | JULY 2015 | WWW.CSNEWS.COM ImpORtant KpIS How To Crew members are fairly aligned about the most important metrics, or key performance indicators (KPIs), to track foodservice program success. In addition to the obvious metrics such as dollar sales, gross and net profit percentages and dollars by item, other top KPIs are: • Prime costs or the Q-factor (which incorpo- rates food, bev- erage and labor costs) compared to theoretical/expect- ed costs. • Units sold by item class and type. For example, biscuit breakfast sandwiches vs. croissant breakfast Prepared Food + Hot, Cold, Frozen Dispensed Beverages FOODSERVICE sandwiches; then also by meat type — sausage vs. ham, bacon, etc. • Daily spoilage/waste, ideally at item level. Spoilage typically comes from three sources: theft, over- portioning and over-production. • Days of supply on-hand. • Market basket of items sold with each menu item. • Items sold by daypart or hour, and day of the week. "Spoilage is a big one that can either be tracked as a total on a subcategory or category level, or ideally at item level so you can see, for example, if 5 percent of your items are causing 70 percent of your spoilage," one retailer noted. All of the KPIs above will lead an operator to control production and preparation, as well as know when to do those tasks, another retailer added. "They will lead you to combo meals and promotional offers, as well as what items were good sellers but have declined," he said. The metrics will also reveal "items that never reached the necessary units-sold threshold and those should be removed from the menu, which Call tO aCtIOn: Foodservice 301 • Establish oversight at headquarters to do ratio analysis and measure pur- chases-to-revenue generation. "This method is only accurate over longer periods of time, but helps signal prob- lems before things gets out of hand," one retailer said. Be a part of Multicultural Retail 360 Summit! The retail industry's only Hispanic and multicultural marketing event For more information about sponsoring the 2015 Multicultural Retail 360 Summit, please contact Michael Hatherill at 201-855-7610 or mhatherill@ stagnitomail.com. Maximize your retail business with Hispanic, African-American, Asian- American, bicultural and other emerging ethnic and cultural U.S. consumer segments. Learn how multicultural consumers are reshaping the fabric of retailing with insights and examples of best practices, new research and thought- provoking sessions by the country's top experts, including speakers from Walmart, Kroger, Walgreens, Brookshire's, The NFL, HSN, and more. ADDISCOUNT Produced by Hosted by Cocktail Reception Sponsor Silver Sponsors Gold Sponsor Exhibitors Bag Sponsor Association & Media Sponsors Store Tour Sponsor Bronze Sponsor Networking Break Sponsor Luncheon Sponsor Breakfast Sponsor

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