Sales per Square Foot . The more revenue you can generate per square foot, the more profitable you will be. You can calculate the cost per square foot … Started in the early 1970's, it hasn't taken long for Starbucks to go from a single storefront to a global phenomenon. However, average sales per square foot data for your particular niche can prove difficult to locate. Your restaurant layout both supports operational workflow and communicates your brand to patrons. In Statista . Retailers use this data to examine differences in same-store sales over time. Experts agree that a 6-step approach works best, starting with allocating space to your kitchen and dining areas. According to Bloom Intelligence , benchmarks for a full service restaurant are as follows: Losing money: $150 or lessBreak-even: $150-$250Profit: $250+ (5%-10% of sales) Calculating the cost per square foot of a restaurant will tell you the cost of construction to build the restaurant or the cost paid for an existing restaurant broken down per square foot. Sales Per Square Foot = Annual Sales ÷ Number of Square Feet If your retail space is 800 square feet, and you make $40,000 a year in gross profit, your sales per square foot in dollars is $50. Similar to a brand like Apple, Starbucks has positioned themselves well over the years making their stores a destination spot for trendy coffee-lovers and have garnered immense brand loyalty among their regular customers. Remember to only count retail selling space in this equation, so you would exclude bathrooms, stockrooms, and the like. It can also roughly calculate return on investment and used to determine rent for a retail location. Sales Per Square Foot = Annual Sales /Square Footage In most cases, full-service restaurants that don't generate at least $150 of sales per square foot have very little chance of generating a profit. Sales Per Square Foot . The quick service restaurant sector (QSR) in the United States has seen a year-over-year growth since 2004, with its peak consumer spending reaching approximately three hundred billion in … Restaurants determine how efficiently floor space is being used by analyzing the sales per square foot ratio. Here are a few places to find the average sales per square foot. Sales per square foot is a measure of the dollar amount of sales generated by a retail location per square foot of displayed stock. Average floor space of select quick service restaurants (QSRs) in the United States in 2016 (in square feet) [Graph]. For example, a 4,000-square-foot restaurant with annual sales of anything less than $600,000 would find it very difficult to avoid losing money. Designing a restaurant floor plan involves more than rearranging tables. (In thousands, except per share, per square foot and store count data) Dear S The Ulta B ˜sc driv result supply chain and s Our t to o Incr We opened 1 stor During 20 as w our r stor Dr E-commer 8.1%. This figure is useful for comparing the cost of restaurants in the same area. Corporate analysts use this data to compare sales in different store locations of a retail chain, regardles of store size. The sales-per-square-foot data is most commonly used for planning inventory purchases. Benchmarking is a key way to determine if your results are good or great. 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