Hospitality glossary · Money and margin
Average spend per head is net sales divided by the number of covers served in the same period, giving the typical amount each guest spends on a visit.
In practice
Definitions are easy. What matters is how the thing behaves in a real operation, and where it tends to go wrong.
Use net, ex-VAT sales and be consistent about what counts as a cover, or the figure moves for reasons that have nothing to do with trading. Split it by daypart and by day of week before reading anything into it: a Sunday lunch and a Tuesday evening are different businesses sharing a room. It is most useful next to covers, because the two move in opposite directions often enough that total sales can hide either one falling.
Trying to lift it with a blanket upselling target. The reliable levers are menu structure, the order in which things are offered, and whether the team can describe what they are selling. A script that pushes a second drink on someone who did not want one costs you the return visit, and the return visit was worth more than the drink.
Questions
Something here that doesn’t match what you’re seeing in your own business? That is usually worth a conversation rather than another article.
Average spend per head is net sales divided by the number of covers served in the same period, giving the typical amount each guest spends on a visit. Use net, ex-VAT sales and be consistent about what counts as a cover, or the figure moves for reasons that have nothing to do with trading. Split it by daypart and by day of week before reading anything into it: a Sunday lunch and a Tuesday evening are different businesses sharing a room. It is most useful next to covers, because the two move in opposite directions often enough that total sales can hide either one falling.
Trying to lift it with a blanket upselling target. The reliable levers are menu structure, the order in which things are offered, and whether the team can describe what they are selling. A script that pushes a second drink on someone who did not want one costs you the return visit, and the return visit was worth more than the drink.
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