Tracking to budget this quarter: which venues are behind, and why
What the answer looks like
Illustrative output on sample data
Illustrative example: how Lexi answers this for a burrito chain with 34 locations, nine weeks into the quarter. It compares POS sales with budget and splits the variance by driver.
- Budget to date: $12.6M. Actual: $12.0M, 4.8% behind.
- Guests: 3% below budget
- Visits per guest: on budget
- Average check: 2% below budget
What the data shows
Eight locations account for most of the shortfall, and all eight are behind on guests.
What it means
Six of the eight are near college campuses, where the fall semester started a week later than last year.
What to do
Hold the campus locations to their budget for the rest of the quarter, and look into the average check gap at the other two.
Want me to show the variance by location and driver?
Why it matters
Knowing a group is behind budget is only useful if you know where and why. Splitting the gap by venue, then into guests, visits per guest and average check, shows which venues need attention and whether the fix lies in marketing, retention or pricing.
Frequently asked questions
How do you find out why a restaurant group is behind budget?
Split the gap by venue, then into number of guests, visits per guest and average check. Each points to a different cause, such as weaker acquisition, lower retention or a change in what guests order, and needs a different response.
How often should restaurant budgets be tracked?
Weekly for sales, so problems show up early, with a fuller monthly review by venue and driver. Weekly tracking lets you act within the quarter, while the monthly view shows whether a gap is a blip or a trend.
Should budget variance be explained by venue or for the whole group?
Both. The group view shows whether you will hit the number, while the venue view shows where the gap comes from. Often a few venues explain most of the variance, and each one has its own cause.