Whilst it’s impossible to put an exact figure on this, our example restaurant below increased annual profit by between $39,000 and $74,000.
To arrive at this figure we made a conservative calculation for a typical mainstream restaurant.
The restaurant is open six nights a week for dinner only and has 40 seats with an average occupancy of 70%. Main meals are priced between $15 and $30 and, before obtaining a liquor licence, the average spend per person is $30.
|
Total Seats |
40 |
A |
|
Average Occupancy |
70% |
B |
|
No of Trading Days |
6 |
C |
|
Average Spend |
$30 |
D |
|
Total Weekly Sales |
$5,040 |
E |
In Queensland the average mark up on liquor is 255%, delivering 71% gross profit to the business owner.
|
Gross Profit |
||
|
Liquor Sales at 21% of total sales |
$1,058.40 |
$751.46 |
|
Liquor Sales at 40% of total sales |
$2,016.0 |
$1,431.36 |
If you want to find out how Liquor & Gaming Specialists can help you add a new revenue stream to your business, call our office on 07 3252 4066. Our initial consultation is free and at that time we will give you an appraisal of the suitability of your premises.
Where do these figures come from?
The figures used above to calculate profit for a fictional restaurant in the Greater Brisbane area are based on research carried out by the Liquor Licensing Division in 2004. We have received a copy of the summary report of a Statutory Records Compliance Audit of On Premises (Meals) Licences. The report contains data on trading figures from 786 licensed restaurants Statewide. The aim of the audit was to identify any restaurants potentially not meeting the primary purpose of the business: the supply of meals.
Of the premises surveyed, 16 respondents, or approximately 2% of the total, had liquor sales in excess of the 50% benchmark. These premises were identified as popular bar/nightclub style restaurants and in the intervening period a number of the businesses have obtained a liquor licence better suited to their style of operation, such as a General or On Premises (Cabaret) Licence.
Of the remainder:
29 restaurants, or less than 4%, had liquor sales in the 41-50% category. Many premises in this category were well known for a significant bar trade but also enjoyed an excellent reputation for quality dining.
Approximately 30% of restaurants, 250 in total, reported liquor sales in the 21-40% category, and were described as ‘typical mainstream restaurants’ where many diners purchase a bottle of wine with a meal.
The majority of respondents, 491 restaurants or 62% of the total number, reported liquor sales in the 1-20% category. This category was predominantly made up of Asian and Italian restaurants but included Sizzler (average 7%), Aromas and other restaurants specialising in coffee.
Therefore, a typical mainstream restaurant will account for 21-40% of turnover through liquor sales, while restaurants with a focus on coffee, take away food or basic Asian style cuisine can expect to account for 1-20% of turnover through liquor.
The data we have does not include a detailed breakdown of sales. However, the report includes an analysis which tells us that across all premises to respond, liquor represented 17% of total sales.
The details in this article are intended for information only, and are not intended to provide formal advice. For this reason, Liquor & Gaming Specialists Pty Ltd cannot accept liability for any loss or consequential loss, however arising,brought about as a result of a person acting, or refraining from acting, on material contained in this article. For formal advice on any matter, please contact our office by clicking here.
